The folks at Telecom Ramblings highlight Zayo’s recently announced plans to split their infrastructure business from their enterprise services business.
The company plans to split itself in half, with infrastructure going one way and enterprise services going the other. We had expected the Allstream portion to be split out somehow, but not quite this way. In the past Zayo has spun out various bits of itself that didn't fit the whole, but since the AboveNet deal they have embraced a dual wholesale and enterprise approach.
They divided things up internally and have reshuffled the deck multiple times, looking for the right combination. But they never really found it, and it seems that with last week's announcement they have now decided to give up trying to serve two masters.
Author: Hillary Stiff is President of Cheval M&A. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 470 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.