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GTT Communications to Acquire Connectivity Solutions Firm Global Capacity
Tuesday 27 June 2017

27 June 2017 - Virginia, US-based cloud networking provider GTT Communications, Inc. (NYSE: GTT) has agreed to acquire Chicago US-based network connectivity solutions provider Global Capacity to expand network reach and add marquee clients, the company said.
The purchase price consists of USD 100m in cash and 1.85m shares of GTT common stock, to be issued to the sellers at closing. This is worth around USD 160.68m given the current price of the stock.
GTT expects that Global Capacity's annualised revenue will be approximately USD 200m at close, net of pro forma adjustments, and that the purchase price will reflect a multiple of post-synergy adjusted EBITDA of 5.0x or lower, with integration and cost synergies to be achieved within two to three quarters after close.
GTT said the acquisition grows its client based adding marquee clients in the healthcare, application service provider, retail and carrier markets, adding complementary recurring revenue streams.
The acquisition augments GTT's managed SD-WAN service with diverse access options, including an extensive on-net ethernet over copper infrastructure.
This acquisition expands scale and network reach with last mile connectivity to over 9.6 m US commercial addresses, from 41 data centres and 1,750 central office points of presence.
After integration, the company said it expects to achieve financial objectives of USD 1.0bn in revenue and USD 250m in adjusted EBITDA.
Global Capacity said GTT's global network reach and extensive portfolio of managed services are a compelling complement to our connectivity platform, resulting in substantial benefits for our carrier and enterprise customers.
GTT offers a suite of cloud networking services, including wide area networking, internet, managed services and voice services.
Global Capacity simplifies connecting enterprises to high value cloud and business destinations. The company delivers solutions to telecommunication carriers, managed service providers, application service providers and enterprise customers globally.
Perella Weinberg Partners LP served as the exclusive financial advisor to Global Capacity in connection with this transaction.
Date Published: 27/06/2017
Target: Global Capacity
Country: USA
Deal Size: 160.68m (USD)
Sector: Telecommunications
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: GTT Communications