GTT Communications to Buy Hibernia Networks for Almost $600 Million

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in July-August 2016.**

Cloud networking provider GTT Communications is acquiring Hibernia Networks in a $590 million cash-and-stock transaction.

Hibernia provides global, high-speed network connectivity services, and owns terrestrial and subsea fiber assets, including Hibernia Express, the lowest latency transatlantic cable system. It owns and operates a global network serving more than 100 markets and spanning 25 countries.

The deal, consisting of $515 million in cash and about 3.3 million shares of GTT common stock valued at $75 million, is expected to close in the first quarter of 2017.

Gina Nomellini, GTT’s chief marketing officer, tells Channel Partners the acquisition will bring significant benefits to partners of both companies.

“Specifically, our combined channel partner base will be able to choose from a more robust suite of services, with the addition of optical and low latency transport, video and CDN offerings to GTT’s existing suite of cloud networking services,” she said. “The transaction also combines GTT’s top-five-ranked global Tier 1 IP backbone with Hibernia’s leading fiber routes, including the lowest latency transatlantic cable system, to deliver a network rich in both depth and breadth. These combined network assets are a strategic differentiator for us and our channel partners as they resell GTT services, especially to clients who have specific requirements around latency or large enterprises with offices around the world.”{ad}

The acquisition also: adds a video transport platform servicing content rights holders, broadcasters, cable companies and OTT providers; grows GTT’s client base, adding marquee clients with depth in the financial services, media and entertainment, web-centric and service-provider segments; and enhances GTT’s financial profile by adding a “substantial, highly complementary” recurring revenue business with strong cash flow characteristics, GTT said.

“This transaction provides excellent value and opportunities for channel partners through the combination of two sets of complementary, versus competitive, assets,” Nomellini said. “Partners can leverage the combined suite of product offerings to cross-sell and upsell into their existing accounts, improving customer stickiness, as well as penetrating new accounts. Additionally, partners will now have the opportunity to choose from a wide variety of verticals and to go deep in specific verticals where the company may have specific advantages over competitors. For example, Hibernia has …

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… rich expertise in the financial sector and ultra-low latency fiber routes, which can be a key selling point for GTT channel partners.”

GTT and Hibernia’s channel programs will operate as separate entities for the time being, she said.

“As GTT completes its integration process, it is likely that we will create a combined channel partner program, building on the success of our current initiatives in this area,” Nomellini said.{ad}

“GTT’s acquisition of Hibernia Networks provides great benefit to the entirety of our customer base as well as our two organizations,” said Bjarni Thorvardarson, Hibernia’s CEO. “GTT gains world-class global fiber assets, including ultra-low latency routes between key financial markets, as well as optical, low latency and content services, and exceptional employees with a proven track record of network and commercial leadership, and exemplary customer service.”