Zayo Group Considers Sale of Colocation Division

Zayo Group Holdings Inc., the fiber network owner that Digital Colony Partners and EQT Partners agreed to acquire in May, is seeking a buyer for its colocation arm, according to people familiar with the matter.

The business, Zayo Colocation, or zColo, could fetch about $1 billion in a sale, said one of the people, who asked to not be identified because the matter isn’t public. Zayo is working with an adviser to solicit interest from prospective suitors, which include infrastructure funds, they said.