GTT Wraps Interoute Acquisition, Reinforces SD-WAN Position

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GTT Communications has completed its $2.3 billion acquisition of Interoute, the operator of one of Europe’s largest independent fiber networks.

Interoute is a U.K.-based company known for its fiber network and cloud-networking offerings, with 400 points of presence and interconnection with 129 cities. This was GTT’s first acquisition outside of the United States since it announced plans to buy Hibernia Networks in 2016.

GTT’s Rick Calder

“The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people across organizations, around the world and to every application in the cloud,” said Rick Calder, GTT‘s president and CEO. “Our enhanced scale, expanded network footprint and award-winning product capabilities reinforce our position as a global leader in cloud networking. We look forward to bringing the benefits of this acquisition to our valued clients across the world.”

GTT was set to receive a $175 million investment in its common stock when the deal closed. This equity commitment would reduce the amount of debt to be issued by GTT to fund the acquisition on a dollar-for-dollar basis.

The addition of Interoute adds a large base of marquee multinational clients, balanced across geographies and verticals, with high levels of recurring revenue, GTT said. It also strengthens the company’s leadership in SD-WAN.

GTT expects to complete the integration of Interoute within three to four quarters after closing.