Cloud networking provider GTT Communications, Inc. (NYSE: GTT) announced last week an agreement to acquire Interoute, operator of one of Europe’s largest independent fiber networks and cloud networking platforms, for approximately $2.3 billion in cash.
The strategic combination:
- Significantly augments scale, expanding GTT’s Tier 1 global IP network with one of Europe’s most extensive fiber footprints. The network includes over 400 points of presence, spanning 24 metro areas and interconnecting 126 cities across 29 countries.
- Strengthens GTT’s leadership position in software-defined wide area networking with expanded capabilities.
- Adds 15 data centers, 17 virtual data centers and 51 co-location facilities, enhancing GTT’s cloud connectivity platform.
- Contributes infrastructure, edge and hosted services to GTT’s suite of cloud networking services.
- Expands and complements GTT’s multinational client base, adding over 1,000 strategic enterprise and carrier clients, primarily headquartered in Europe.
- Enhances GTT’s global team with a world-class sales, operations and customer service organization.
“The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organizations and around the world,” said GTT President and CEO Rick Calder. “This combination creates a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients’ growing demand for distributed cloud networking in Europe, the U.S. and across the globe.” He expects to complete the integration “within three to four quarters post-close” and achieve a post-synergy multiple of seven to eight times Adjusted EBITDA or better on a pro forma basis.
March 7, 2018