GTT Communications, Inc., the global cloud networking provider to multinational clients, announced a definitive purchase agreement to acquire Interoute, operator of one of Europe’s largest independent fibre networks and cloud networking platforms, for approximately €1.9 billion ($2.3 billion) in cash.
The strategic combination:
- Significantly augments scale, expanding GTT’s tier-one global IP network with one of Europe’s most extensive fibre 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 (SD-WAN) with expanded capabilities.
- Adds 15 data centres, 17 virtual data centres and 51 colocation 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 organisation.
“The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organisations and around the world,” said Rick Calder, GTT president and CEO. “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.
Following our successful, proven acquisition model, we expect to complete this 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.”
“This is an exciting next chapter for Interoute, GTT, our customers and our team,” said Gareth Williams, Interoute CEO. “The combined assets and strengths of our two companies create a powerful portfolio of high-capacity, low-latency connectivity, and innovative cloud and edge infrastructure services to support our customers in the global digital economy.”
Interoute has received the strong support of its shareholders — the Sandoz Family Foundation, Aleph Capital and Crestview Partners — in its strategy of building and consolidating the European fibre, cloud and connectivity markets to create a player with significant scale and international presence.