Private equity, Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content, Networking

Zayo Group Acquires Managed Network, Security Services Provider ENA

Fiber optics abstract background – Data Internet Technology Cable

Fiber network provider Zayo Group, backed by private equity firms Digital Colony Partners and EQT Partners, has acquired Education Networks of America (ENA) -- a provider of managed network connectivity and security services to E-Rate-funded school districts and public sector customers.

The seller was private equity firm ZMC, which had owned ENA since 2016. Financial terms of the deal were not disclosed

This is technology M&A deal number 237 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Zayo Group Acquires ENA: Network Services Strategy

Together, ENA and Zayo plan to provide education, library, community healthcare and public sector customers with managed services and associated customer support services.

About the buyer: Zayo Group has more than 3,300 employees listed on LinkedIn. The company operates a 126,000-mile network in North America and Europe. The network spans dark fiber, private data networks, wavelengths, Ethernet, dedicated internet access and data center connectivity solutions. Zayo Group has M&A experience. Another recent deal involved buying SD-WAN managed services provider QOS Networks in January 2022.

About the acquired asset: ENA has 778 employees listed on LinkedIn. The company designs and engineers connectivity, communication, cloud, security, and data analytics solutions.

Zayo Group Buys ENA: Executive Perspectives

In a prepared statement about the deal, Zayo President Andrés Irlando said:

“ENA is a leader in delivering comprehensive managed network and security solutions for educators, enhancing academic quality and productivity driven by digital transformation and the growing need for remote learning. As Zayo looks to expand its strong public sector capabilities and serve the critical connectivity needs of our nation’s education system, ENA brings the technology, geographic reach, and service delivery we need to help our customers thrive. We are committed to expanding this business, providing enhanced services to ENA customers and supporting the ENA team as we drive growth and innovation together.”

Added David Pierce, CEO of ENA:

“By joining Zayo, ENA will be combining our high-touch managed services approach and innovative technology solutions with Zayo’s best-in-class fiber network and already robust E-Rate practice. Together we will deliver tremendous value and industry-leading customer experience, and enable faster growth. We are excited for this next chapter as part of Zayo.”

Andrew Vogel, Co-Chief Investment Officer and Managing Partner at ZMC, concluded:

"We thank ENA’s outstanding management team and talented group of employees for their partnership during a period characterized by innovation in a rapidly changing environment. We remain excited about the company's future prospects with Zayo’s support.”

Zayo: Additional Acquisition Rumors

Rumors about Zayo exploring multiple acquisitions have popped up since about October 2021. Among the alleged acquisition targets: Broadband network owner Uniti Group and managed communication services provider Windstream, according to a 2021 rumor that has yet to prove accurate.

Investors Digital Colony Partners and EQT Partners acquired Zayo in 2019 for more than more than $8 billion.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.