Hungry American GTT gobbles Euro network biz Interoute for $2.3bn
Yet more consolidation in networking world
London-based fibre and cloud networks business Interoute has been acquired by US networking business GTT for $2.3bn (£1.65bn).
The deal will add 72,000km of fibre optic to GTT Communications and expand its presence to 126 cities across 29 countries. Currently the business provides IP and managed network services in 100 countries.
It will also add 15 data centres, 17 virtual data centres and 51 colocation facilities to GTT's cloudy platform.
Rick Calder, GTT's chief exec, said the deal would help fulfil clients’ growing demand for distributed cloud networking "in Europe, the US and across the globe".
The integration of the business is expected to take three to four quarters, with Calder adding that "post-synergy" it is hoped to yield a high return on investment.
Gareth Williams, Interoute CEO, said: “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.”
For its last full-year results in 2016, GTT posted sales of $521.7m (£373m), up 41.3 per cent mainly thanks to a series of acquisitions. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 62.3 per cent to $125m (£89.5m).
In its annual results, Interoute posted revenues of €718m (£514m) and EBITDA of €165m (£118m).
Interoute has itself grown via a series of acquisitions. In 2015 it doubled in size via a £402m gulp of networking outfit Easynet. ®