Zayo Raises $225 Million

Zayo Bandwidth, a Louisville, Colo.-based regional provider of fiber-based network services, has secured access to $225 million in private equity funding. Backers include Columbia Capital, M/C Venture Partners, Oak Investment Partners, Battery Ventures and Centennial Ventures.

Zayo is run by former ICG Communications and Level 3 Communications executives Dan Caruso and John Scarano, and recently acquired two companies: PPL Telcom, a 4,600 fiber-route-mile network serving areas throughout the Northeast, and Memphis Networx, a 200 fiber-route-mile network serving the greater Memphis area. It also today announced agreements to acquire both Indiana Fiber Works of Indianapolis and Onvoy Inc. of Minneapolis. Combined, the four companies represent $125 million of annual revenue and 8,400 route miles of fiber.