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10 November 2016
| Alan Burkitt-Gray
GTT Communications has signed a definitive agreement to acquire Hibernia Networks, the owner of terrestrial and subsea fibre assets including Hibernia Express.
The acquisition will cost a total of $590 million, made up
of $515 million in cash and 3.3 million shares of GTT common
stock, valued at $75 million.
Rick Calder, GTT president and CEO, said: "This acquisition
accelerates GTT’s growth strategy by expanding our
portfolio of cloud networking services, significantly
increasing the scope and power of our global network, and
growing our multinational client base."
Bjarni Thorvardarson, Hibernia Networks’ CEO,
said: "GTT’s acquisition of Hibernia Networks
provides great benefit to the entirety of our customer base as
well as our two organisations."
Calder added: "Hibernia Networks has a demonstrated track
record of growth, and brings unique, strategic network assets
featuring high-bandwidth, low latency connectivity."
The two companies will integrate their operations, a project
that will take two or three quarters after the deal is closed,
Thorvardarson said: "GTT gains world class global fibre 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
The companies expect to close the transaction by the end of
first quarter 2017, subject to regulatory approval and other