01 June 2018
| Alan Burkitt-Gray
CEO Gareth Williams and most of his C-level team left Interoute yesterday as GTT completed its $2.3 billion takeover.
Along with Williams, CFO Catherine Birkett, CTO Matthew Finnie
and group general counsel Maurice Woolf all left yesterday as
GTT’s Rick Calder moved in to become president and
CEO to oversee the integration.
GTT completed the acquisition just three months after
announcing the deal to buy the unlisted London-based company
from its investors, including the Swiss-based Sandoz Family
Foundation. The acquisition was announced at the end of
Calder said: "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."
In advance of the completion, Calder has visited all of
Interoute’s offices across Europe, he told
Capacity in an interview that will be published in the
An official statement yesterday from the company did not detail
the management changes. But Capacity understands that,
apart from Williams, Birkett, Finnie and Woolf, the others who
left the company yesterday include Robert McNeal, vice
chairman, and Jan Louwes, executive VP of sales and
Those staying with GTT, as the company will now be rebranded
across Europe, include Andrew Holder, executive VP of customer
operations, Mark Lewis, executive VP of communications and
connectivity, and Jonathan Brown, VP of marketing.
Brown told Capacity: "The exciting thing for those who
are staying is it’s a really good opportunity. It
gives us a lot more global scale."
Some of the remainers may find themselves in senior leadership
positions in the expanded GTT, Calder hinted in his
Capacity interview. Currently Martin Ford heads GTT
EMEA and Asia-Pacific but Calder said he might "create two or
even three division presidents in Europe". He said:
"There’s lots of great talent coming in from
GTT said in its statement that the addition of Interoute would
create "the most comprehensive and competitive global cloud
networking platform in the industry", and add "a large base of
marquee multinational clients, balanced across geographies and
verticals, with very high levels of recurring revenue".
It would strengthen "GTT’s leadership in
software-defined wide area networking" and enhance its global
Calder said: "The acquisition of Interoute represents a major
milestone in delivering on our purpose of connecting people
across organisations, around the world and to every application
in the cloud."
In March GTT said it would hold off on any further major acquisitions
until it had integrated Interoute – though it did
buy a small Canadian company, ACI, just a
couple of weeks after announcing the Interoute deal. ACI took
its tally of acquisitions to seven in around 18 months.
Other recent acquisitions include Hibernia Networks, Global
Capacity, Mammoth, Giglinx, Perseus, Transbeam and Custom
GTT said in March that two smaller shareholders in Interoute, Aleph
Capital Partners and Crestview Partners, would invest $175
million in common stock in the combined company.
Calder told Jason McGee-Abe, editor of Capacity,
during their meeting at International Telecoms Week in Chicago
in early May: "We successfully completed a debt bank financing
round of $1.8 billion in the US and €750 million." It was
"highly oversubscribed, led by Credit Suisse and a group of six
other banks at significantly lower interest rates than we
thought going in." He added: "We had raised $450 million in
equity funding." This interview will be published in full in
the next issue of Capacity.
He confirmed that Interoute will be rebranded as GTT
quickly: "Our view is that we’re still a
relatively small player and building brand identity and
awareness across two brands is too difficult."