Global cloud networking provider, GTT Communications, Inc. (NYSE: GTT), is seeking to sell its Infrastructure Division. This includes the company’s highly differentiated terrestrial pan-European fiber network, subsea transatlantic fiber and data center infrastructure that were part of the Interoute and Hibernia acquisitions in 2018 and 2016 respectively.
“This potential divestiture in no way alters the execution of GTT’s core strategy of providing cloud networking services to large and multinational clients as we deliver on our purpose of connecting people to any location in the world and to every application in the cloud,” said Rick Calder, GTT president and CEO.
GTT selected Credit Suisse and Goldman Sachs to act as financial advisors to the company in connection with the potential sale of its Infrastructure Division. “The appointment of Credit Suisse and Goldman Sachs is an important step in our process to explore the sale of our Infrastructure Division,” added Mr. Calder.
GTT acquired Interoute in 2018 for $2.3 billion (€1.9 billion) in cash. The acquisition added 15 data centers, 17 virtual data centers and 51 colocation facilities to its portfolio.
The acquisition of Hibernia Networks in 2016 also included Hibernia Express, a “low-latency” transatlantic cable system. The $590 million Hibernia acquisition consisted of $515 million in cash and approximately 3.3 million shares of GTT common stock valued at $75 million.
Custom Connect, Access Point, KPN
In 2018, GTT also acquired Access Point as well as Custom Connect. The latter one was a Netherlands-headquartered provider of high-speed network connectivity serving multinational enterprises and financial trading firms worldwide. Financial terms of the deal were not disclosed. This acquisition extended the reach of GTT’s global Tier 1 IP backbone with additional Points-of-Presence (PoPs) in Europe and the Middle East.
Through its acquisition of Access Point, a company headquartered in Cary, North Carolina, GTT was able to incorporate complementary managed broadband solutions while also adding Internet and voice capabilities, to further enhance its global position in the cloud networking space. GTT paid $40 million to acquire Access Point, composed of $35 million in cash and 115,194 shares valued at $5 million.
Most recently, last summer actually, GTT announced its acquisition of KPN International for approximately €50 million in cash. Part of listed telecommunications company KPN, their business unit KPN International operates a global IP network for enterprise and carrier customers. This acquisition would help GTT increase the scale and reach of their network. It would help improve GTT’s global Tier 1 IP network in 21 countries in Europe, including long-distance fiber connections and metro rings in Amsterdam, London, Paris and Frankfurt. According to GTT, this recent acquisition will complement their extensive portfolio of cloud network services, with comparable transport, infrastructure, Internet and WAN services of the highest level.