GTT completes acquisition of Global Capacity
GTT, the cloud networking provider has completed its $100 million acquisition of Global Capacity, a provider of networking services to enterprises.
The deal, which was announced in June of this year, see GTT add expand its network reach to over 10 million US commercial premises through low cost connectivity. In addition, the company will operate a total of 41 data centres and 1,750 central office points of presence.
Speaking on the completion, Rick Calder, GTT president and CEO, said: “This transaction accelerates GTT’s growth strategy and advances our commitment to connecting people across organisations and around the world. Our combined client base will benefit from an expanded and talented team that is focused on delivering superior client service by living GTT’s core values of simplicity, speed and agility.”
GTT’s client base will also expand under the new acquisition, with the addition of what they describe as ‘marquee clients’. These include customers in healthcare, application service providers, retail and carrier markets, all which contribute to recurring revenue streams for GTT.
In terms of network, the increase in assets will only improve GTT’s SD-WAN service with diverse access options, including the addition of Global Capacity’s on-net Ethernet over copper infrastructure.
The transaction comprises of $100 million in cash which was funded with the proceeds from the debt offering completed in May and 1.85 million shares of GTT common stock.
GTT says that it expects to complete the integration of Global Capacity within two to three quarters once the deal has closed and it will still aim to meet its next financial objective of $1 billion in revenue and $250 million in Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation).