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MSP Acquisition: GTT Buys Telnes for Channel Push

GTT Communications, a cloud networking provider to multinational clients, has acquired Telnes Broadband, an Internet and managed services provider (MSP). The $18 million buyout will allow GTT to accelerate its channel sales while pushing deeper into several vertical markets, the two companies say.

Telnes, founded in 2003, provides  high-availability managed network services and cloud communications. The company’s revenue for 2015 was roughly $17 million, with adjusted EBITDA of about $1 million. GTT expects to integrate Telnes into its business within two quarters, while delivering a “post-synergy purchase price multiple of less than five times Adjusted EBITDA.” (In other words, GTT did not pay an 18X multiple on EBITDA to buy Telnes.)

Although Telnes is based in Everett, Wash., this isn’t a regional managed services play. GTT’s EtherCloud provides “private, public and hybrid network solutions to any location in the world and with any application in the cloud.” Now, those services will be available to Telnes channel partners and customers. Telnes CEO Jason Ness says the deal will empower agents with a large portfolio of international services.

This is the latest in a growing list of MSP-oriented acquisitions that surfaced this week. Additional deals included:

We will update this article if/when more details about the GTT-Telnes deal becomes available.

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