GTT buys Custom Connect to boost global IP backbone
GTT Communications has continued its acquisition spree by agreeing a deal to buy Amsterdam-headquartered high-speed network connectivity provider Custom Connect for an undisclosed fee.
GTT, which last year acquired four companies including Hibernia Networks, said its latest purchase will help extend the reach of its global Tier 1 IP backbone by adding additional points of presence in Europe and the Middle East.
The acquisition of Custom Connect will also boost GTT’s portfolio of ultra-low latency services aimed at multinationals and the financial services sector, giving what it claims is the industry’s lowest latency service between Frankfurt, London, New York and Chicago.
Customer connect operates in 196 countries, with more than 20,000 locations and over 200 selected clients. Its products, which also include SD-WAN, Ethernet, and IP.
“Custom Connect and GTT are highly complementary businesses and the combination provides strategic advantages to our clients as well as our organizations,” said Olav van Doorn, Custom Connect CEO.
“GTT gains strategic network assets and marquis clients. We look forward to a seamless integration in the upcoming months.”
On a regional basis, the deal expands GTT’s reach in Europe and the Middle-East. This includes bolstering the firm’s sales presence in the Benelux region, whilst also deepening GTT’s base of multinational clients with highly strategic accounts.
It means GTT begins 2018 in much the same vein as it spent 2017, with another acquisition. On top of Hibernia, which it bought for $590 million, GTT bought Global Capacity for $161million, Transbeam for $28 million, and Perseus for $39.5 million. Oppenheimer served as the exclusive financial advisor for Customer Connect in this latest deal.
“The acquisition of Custom Connect extends GTT’s network and strengthens our service offerings in high growth financial markets,” said Rick Calder, GTT president and CEO. “These enhanced capabilities reinforce GTT’s market leadership in cloud networking and our commitment to connecting people – across organizations and around the world.”