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Zayo To Separate Into Two Public Companies

Zayo Group Holdings Inc. (ZAYO) Thursday said it plans to separate into two publicly traded companies.

One of the companies will focus on providing core communications infrastructure, while the other will leverage infrastructure to provide solutions for a broad set of enterprise customers.

Zayo Infrastructure will be a fiber-focused infrastructure provider with deep, dense networks and broad geographic reach throughout North America and Western Europe.

While, Zayo EnterpriseCo will have a strong product portfolio and customer base centered on higher bandwidth connectivity to enterprise locations, including to public cloud and SaaS providers, that will be sold both directly to enterprise customers and wholesale through a carrier focused channel.

"Today's announcement is the logical next step in the evolution of Zayo," said Dan Caruso, chairman and CEO of Zayo. "While Zayo's business today is organized as five autonomous segments, the complexities of these businesses have made it more difficult to achieve our growth objectives. By completely separating the infrastructure and enterprise businesses, we will enable more focused execution within each business, leading to enhanced growth and unlocking value."

"This transaction positions InfraCo as the largest pure-play fiber-focused communications infrastructure provider and creates an opportunity for EnterpriseCo to fully focus on our extensive enterprise customer base, solution set and business model while maintaining a strategic relationship with InfraCo," said Caruso.

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