Market
GTT takes over Interoute
GTT Communications, Inc., a leading cloud and network provider for multinational customers, has announced that it has entered into a definitive agreement to acquire Interoute. The purchase price for the operator of one of the largest independent fiber optic networks and cloud network platforms in Europe is approximately EUR 1.9 billion in cash.
This strategic connection:
- Significantly extends the reach and expands GTT's global Tier 1 IP network with one of Europe's most extensive fiber optic networks. The network includes over 400 points of presence, covering 24 metropolitan areas and connecting 126 cities in 29 countries.
- Strengthens GTT's leadership position in software-defined wide-area networking (SD-WAN) by expanding performance capabilities.
- Enhances GTT's cloud connectivity platform with 15 additional data centers, 17 virtual data centers and 51 co-location centers.
- Supports GTT's cloud network services through infrastructure, edge and hosted services.
- Expands and complements GTT's multinational customer base by connecting over 1,000 strategic enterprise and carrier customers headquartered primarily in Europe.
- Adds a world-class sales, operations and customer service organization to GTT's global team.
"The acquisition of Interoute represents a major step toward our goal of connecting people across organizations and around the world," said Rick Calder, CEO and President of GTT. "This combination creates a powerful market leader with broad reach, specific network assets and award-winning products to meet customers' growing demand for a cloud offering in Europe, the US and around the world. Based on our successful and proven acquisition model, we expect to fully complete the integration within three to four quarters of the acquisition and deliver seven or eight times post-synergy adjusted EBITDA multiple or better on a pro forma basis.
"This acquisition represents an exciting new chapter for Interoute, GTT, our customers and our team," commented Gareth Williams, CEO of Interoute. "The combined assets and strengths of our two companies create a strong portfolio of high performance, low latency connectivity and innovative cloud and edge infrastructure services to support our customers in the global digital economy."
Interoute has received strong support from its shareholders (the Sandoz Family Foundation, Aleph Capital and Crestview Partners) on its strategy to build and consolidate the European fiber, cloud and connectivity market, with the aim of creating a player with broad reach and international presence.
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