Global Cloud Networking Provider GTT Acquires Interoute for $2.3 Billion in Cash

After buying Netherlands-based high-speed network connectivity company Custom Connect lately, GTT Communications has announced another acquisition, quite a big one this time. GTT will acquire Interoute, operator of one of Europe’s largest independent fiber networks and cloud networking platforms, for approximately $2.3 billion (€1.9 billion) in cash.

“This combination creates a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients’ growing demand for distributed cloud networking in Europe, the U.S. and across the globe,” said Rick Calder, President, and CEO of GTT. “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 strategic combination would

  • Significantly augment scale, expanding GTT’s Tier 1 global IP network with one of Europe’s most extensive fiber footprints. The network includes over 400 Points of Presence (PoPs), spanning 24 metro areas and interconnecting 126 cities across 29 countries.
  • Add 15 data centers, 17 virtual data centers and 51 colocation facilities, enhancing GTT’s cloud connectivity platform.
  • Contribute infrastructure, edge and hosted services to GTT’s suite of cloud networking services.
  • Expand and complement GTT’s multinational client base, adding over 1,000 strategic enterprise and carrier clients, primarily headquartered in Europe.
  • Enhance GTT’s global team with Interoute’s sales, operations and customer service organization.
  • Strengthen GTT’s position in software-defined wide area networking (SD-WAN) with expanded capabilities.

“This is an exciting next chapter for Interoute, GTT, our customers and our team,” said Gareth Williams, CEO of Interoute. “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.”