Zayo — Merger or Acquisition (November 2016)
16 slides from Zayo's merger presentation, Nov 30, 2016
Slide 1: Zayo Acquisition of Electric Lightwave
Zayo Acquisition of Electric Lightwave 30 November 2016
Slide 2: Zayo Group Safe Harbor
ZAYO GROUP SAFE HARBOR Information contained in this presentation that is not historical by nature constitutes “forward-looking statements” which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “plans,” “intends,” “estimates,” “projects,” “could,” “may,” “w
Slide 3: The Transaction
The Transaction 3 Purchase of Electric Lightwave (“ELI”) (formerly Integra), a facilities-based provider of communications services $538 million LQA Revenue $180 million LQA EBITDA $1.42 billion purchase price Subject to standard closing and post-closing adjustments (ex: working capital) ~7.9x Adjus
Slide 4: ELI History
2012 2015 2016 Integra changes name to Electric Lightwave, reinforcing its multi-year pivot from a CLEC to a fiber-rich Communications Infrastructure provider ELI History ELI is a combination of four main companies: Integra Telecom, Electric Lightwave, Eschelon Telecom and opticAccess Integra acquir
Slide 5: ELI strengthens Zayo's fiber position along the West Coast
ELI strengthens Zayo’s fiber position along the West Coast ELI’s broad and deep fiber asset is highly complementary to Zayo’s existing network 8,100 route miles of long haul fiber connecting major markets west of the Rocky Mountains 4,000 route miles of metro fiber in 35 markets including: San Franc
Slide 6: Global Network Bolsters West Coast Fiber
6 GLOBAL NETWORK Bolsters West Coast Fiber SME revenue in MN & CO
Slide 7: Long Haul Fiber Network
Long Haul Fiber Network 7 8,100 route miles of long haul fiber connecting major markets west of the Rocky Mountains Includes high fiber count owned routes from Las Vegas to Phoenix and San Diego to San Luis Obispo Provides diversity along strategic LH routes Complementary IRU’d fiber from Zayo, Cent
Slide 8: Major expansion of Portland and Sacramento
8 Major expansion of Portland and Sacramento Portland, OR Sacramento, CA
Slide 9: Densification of Seattle and San Francisco
9 Densification of Seattle and San Francisco Seattle San Francisco
Slide 10: Strengthening of Salt Lake City, Boise and Spokane
10 Strengthening of Salt Lake City, Boise and Spokane Salt Lake City Spokane Boise
Slide 11: Enhancements to Phoenix, San Jose, Minneapolis, LA and Denver
11 Enhancements to Phoenix, San Jose, Minneapolis, LA and Denver Phoenix Minneapolis Denver Los Angeles San Jose
Slide 12: Now is an opportune time for Zayo to acquire
Now is an opportune time for Zayo to acquire Historically, “Integra” focused on CLEC business model From 2011 to 2016, “Integra” began transition to fiber-focused business model In August 2016, changed name to ELI and began separation into two businesses: Communications Infrastructure (Electric Ligh
Slide 13: High Level Integration Plan
High Level Integration Plan Focus on leveraging fiber assets as Communications Infrastructure 35-45% of ELI revenue Heavy and rapid integration into core Zayo organization, processes and systems Target >50% EBITDA contribution Leverage Allstream workstream to optimize value of SME and Voice business
Slide 14: Summary
Summary Fiber rich and complementary assets in important west coast markets Low pre-synergy and post-synergy purchase price multiple Zayo’s balance sheet enables funding at a low incremental cost of capital Zayo uniquely positioned acquiror, given complementary assets, integration expertise and timi
Slide 15: Q & A
Q & A
Slide 16: Thank You
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