Global provider of network infrastructure, Zayo Group, has announced a significant organizational shift, planning to split into two independent companies. This strategic move aims to sharpen the focus of Zayo’s operations by dividing its European business from its services catering to global network needs outside of its main markets in North America and Europe.
The newly formed Zayo Europe will become a standalone entity, operating under the leadership of Colman Deegan, who has recently taken over as CEO. With an existing infrastructure of mostly-owned fiber networks across eight Western European countries, Zayo Europe is positioned to pursue growth more aggressively in these regions. The company will continue to operate major employee hubs in London, Paris, Stuttgart, and Sofia, maintaining a strong presence in these key markets.
Steve Smith, CEO of Zayo, highlighted the significance of this strategic decision, stating, “The transition of our European business into an independent entity marks a pivotal moment in Zayo Group’s strategic journey as we look to maximize our potential across the continent.” Mr. Smith also noted that the shared ownership would continue to invest in Zayo Europe, aiming to accelerate growth and increase market penetration in Europe under Deegan’s leadership.
Adding to the leadership dynamic, Zayo Europe will welcome Jens Schulte-Bockum as the chairman of its new board of directors. Schulte-Bockum brings extensive experience, having served as the CEO of Vodafone Germany and Group COO of MTN Group, which promises to enrich the strategic direction of the company.
International Network Expansions
Colman Deegan, the new CEO of Zayo Europe, expressed optimism about the restructuring, saying, “This strategic move will allow us to tailor our services and solutions to the needs of our European customers. As an independent company, we will have the agility to innovate faster, enhance our customer service, and deepen our commitment to the local markets.” Mr. Deegan sees this as a pivotal chapter in the company’s history, one that will focus on delivering enhanced value to customers and investors alike.
Meanwhile, Zayo’s other division, which addresses the global network requirements of customers beyond its North American and European strongholds, will also be restructured into a separate entity. This division will maintain a dedicated management team focused on supporting the international network expansions of its North American and European customers.
The full legal separation of these entities is scheduled for completion in the second half of 2024, as Zayo Group continues to refine its operational structure and strategic objectives. This restructuring is expected to provide each entity with the flexibility needed to capitalize on unique market opportunities, simplify operations, and better align with their strategic and business goals, ultimately aiming to enhance long-term value for stakeholders across the board.
