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GTT to Acquire Global Capacity for $100 million

GTT to Acquire Global Capacity for $100 million Image Credit: Global Capacity

GTT Communications, the leading global cloud networking provider to multinational clients, announced an agreement to acquire Global Capacity for $100 million in cash and 1.85 million shares of GTT common stock.

Global Capacity is a provider of network connectivity solutions that simplifies the process of connecting enterprises to high-value cloud and business destinations.

The acquisition grows GTT’s client base, with the addition of marquee clients in the healthcare, application service provider, retail and carrier markets, adding highly complementary recurring revenue streams.

It also ugments GTT’s Managed SD-WAN service with diverse access options, including an extensive on-net Ethernet over Copper infrastructure. In addition, it expands scale and network reach with last mile connectivity to over 9.6 million U.S. commercial addresses, from 41 data centers and 1,750 Central Office points of presence

The parties expect to close the transaction by the end of third quarter 2017, subject to certain regulatory approvals and other customary closing conditions. GTT said it will fund the cash portion of the consideration at close with funds from the debt offering completed in May.

Rick Calder, President and CEO, GTT
GTT gains new marquee clients, enhanced network reach and scale, and a great team of employees to drive outstanding client experience, through our core values of simplicity, speed and agility. After integration, we expect to achieve our previously announced, next financial objectives of $1 billion in revenue and $250 million in Adjusted EBITDA.

Jack Lodge, President of Global Capacity 
GTT’s global network reach and extensive portfolio of managed services are a compelling complement to our connectivity platform, resulting in substantial benefits for our carrier and enterprise customers. Together, we anticipate growth and success for our customers, employees, and partners.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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