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GTT to Acquire Interoute Fibre Network for EUR 1.9bn
Wednesday 28 February 2018

28 February 2018 - Virginia, US-based cloud networking provider GTT Communications, Inc. (NYSE: GTT) has agreed to acquire fibre network and cloud networking platform provider Interoute for approximately EUR 1.9bn (USD 2.3bn) in a cash transaction, the company said.

The purchase price will be paid in cash at closing. GTT received committed debt financing for the transaction from a group of financial institutions and committed equity financing of USD 250m from GTT's largest institutional investor, Spruce House Partnership, and Acacia Partners.

GTT expects the transaction to close in three to six months, subject to customary regulatory approvals.

The combination augments scale, expanding GTT's Tier 1 global IP network the European fiber footprints. The network includes over 400 points of presence, spanning 24 metro areas and interconnecting 126 cities across 29 countries.

The acquisition adds 15 data centres, 17 virtual data centres and 51 colocation facilities, enhancing GTT's cloud connectivity platform, and contributes infrastructure, edge and hosted services to GTT's suite of cloud networking services.

GTT offers a suite of cloud networking services, including wide area networking, internet, optical transport, managed services, voice and video services. The company's Tier 1 IP network connects clients to any location in the world and any application in the cloud.

Interoute is the owner-operator of one of a Europe-based network and a global cloud services platform, which encompasses 15 datares, 17 virtual data centres and 51 colocation centres, with connections to over 195 additional third-party data centres across Europe.

The company has established operations throughout Europe and the US, and owns and operates 24 connected city networks within Europe's major business centres. 

Interoute reported revenues of EUR 718m (USD 879m) and adjusted EBITDA of EUR 165m (USD 202m) for the 12 months ending September 30, 2017.

Credit Suisse International and Evercore acted as financial advisers to the selling shareholders, and Freshfields Bruckhaus Deringer acted as Interoute's legal advisers. Goodwin Procter LLP served as GTT's legal advisers on this transaction.
Details
Date Published: 28/02/2018
Target: Interoute
Country: USA
Deal Size: 2.3bn (USD)
Sector: Telecommunications
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor:
Buyer: GTT Communications
Buyer Advisor: Goodwin Procter
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