GTT Communications, a cloud networking provider to multinational clients, has acquired European fiber network operator Interoute for US$2.3 billion in cash. The valuation is roughly 11 times EBITDA based on Interoute’s EBITDA of €165 million ($203.06 million) for the 12 months ending September 30, 2017, ChannelE2E calculates.
Interoute began the search for a buyer late last year when, according to a Bloomberg report, the company employed Credit Suisse and Evercore to seek potential suitors.
GTT said the acquisition will:
strengthen its position in software-defined wide area networking (SD-WAN);
add 15 data centers, 17 virtual data centers, and 51 colocation facilities to its cloud connectivity platform;
expand and complement its multinational client base by adding more than 1,000 strategic enterprise and carrier clients; and
enhance its global team.
“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, GTT president and CEO.
GTT expects the deal to close within three to six months.
Data Center, Fiber Network Acquisitions: Hot or Not?