GTT Communications, Inc. (NYSE: GTT), the global cloud networking provider to multinational clients, has announced a definitive purchase agreement to acquire Interoute, operator of one of Europe´s largest independent fiber networks and cloud networking platforms, for approximately EUR 1.9 billion (USD 2.3 billion) in cash, the company said.
Interoute has received the strong support of its shareholders — the Sandoz Family Foundation, Aleph Capital and Crestview Partners — in its strategy of building and consolidating the European fiber, cloud and connectivity markets to create a player with significant scale and international presence.
The purchase price will be paid in cash at closing. GTT received committed debt financing for the transaction from a group of financial institutions and committed equity financing of USD 250 million from GTT´s largest institutional investor, The Spruce House Partnership, and Acacia Partners. GTT expects the transaction to close in three to six months, subject to customary regulatory approvals.
At closing, after funding the acquisition with a combination of debt and equity, the expected ratio of total net debt to Adjusted EBITDA will be approximately 5.0-5.5:1, using pro forma combined Adjusted EBITDA plus expected cost synergies. After closing, over time, GTT expects to reduce the ratio of total net debt to Adjusted EBITDA to its long-term target range of 3.0-4.0:1.
Goodwin Procter LLP served as GTT´s legal advisers on this transaction.
GTT provides multinationals with a better way to reach the cloud through its suite of cloud networking services, including wide area networking, Internet, optical transport, managed services, voice and video services. The company´s Tier 1 IP network, ranked in the top five worldwide, connects clients to any location in the world and any application in the cloud. GTT delivers an outstanding client experience by living its core values of simplicity, speed and agility. For more information on how GTT is redefining global communications, visit www.gtt.net.
Interoute is the owner-operator of one of Europe´s largest networks and a global cloud services platform, which encompasses 15 data centers, 17 Virtual Data Centers and 51 colocation centers, with connections to over 195 additional third-party data centers across Europe. Its full-service Unified ICT platform serves international enterprises and many of the world´s service providers, as well as governments and universities. Interoute´s Unified ICT strategy provides solutions for enterprises seeking connectivity and a scalable, secure advanced platform on which they can build their voice, video, computing and data services, as well as service providers in need of high-capacity international data transit and infrastructure. With established operations throughout Europe and the USA, Interoute also owns and operates 24 connected city networks within Europe´s major business centers. www.interoute.com