GTT Communications has completed a €1.9 billion deal for Interoute.
As one of Europe’s largest independent fibre networks and cloud networking platforms, Interoute’s existing network will allow GTT to expand its Tier 1 global IP network. The network includes over 400 points of presence, spanning 24 metro areas and interconnecting 126 cities across 29 countries.
“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 fulfil 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.”
The acquisition also strengthens GTT’s leadership position in software-defined wide area networking and adds 15 data centres, 17 virtual data centres and 51 colocation facilities to GTT’s cloud connectivity platform. It also expands and complements GTT’s multinational client base, adding over 1,000 strategic enterprise and carrier clients, primarily headquartered in Europe.
“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.”