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Aleph and Crestview to Invest USD 175m in GTT as Part of Interoute Acquisition
Monday 26 March 2018

26 March 2018 - A group of investors, led by investment firms Aleph Capital Partners LLP and Crestview Partners, has committed to invest USD 175m in the common stock of US-based cloud networking provider GTT Communications, Inc. (NYSE: GTT) at the closing of the acquisition of Interoute by GTT, GTT said.

GTT's EUR 1.9bn acquisition of fibre network and cloud networking platform provider was previously announced on 26 February.

Aleph and Crestview are significant shareholders of Interoute, and they will invest a portion of their proceeds from the sale of Interoute into the combined company.

Per the terms of GTT's debt financing commitment for the Interoute acquisition, this equity commitment will reduce the amount of debt to be issued by GTT to fund the acquisition on a dollar-for-dollar basis.

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: 26/03/2018
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
Comment:
Existing GTT Communications shareholders Aleph Capital Partners LLP and Crestview Partners to invest USD 175m in GTT Communications at closing.

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