GTT to acquire KPN International in €50m cash deal
GTT Communications has announced today a definitive purchase agreement to acquire KPN International, a division of KPN N.V., for approximately €50 million.
KPN International operates a global IP network serving enterprise and carrier clients and the €50 million cash deal, which is on a cash and debt-free basis, will help to expand the global cloud networking provider’s network scale and market footprint in Europe.
“The acquisition of KPN International deepens our market presence in the European region,” said Rick Calder, GTT president and CEO (pictured).
“The world-class resources contributed from this acquisition, including a highly experienced team, international network assets and a deep roster of multinational clients, will help us deliver on our purpose of connecting people across organisations around the world and to every application in the cloud.”
It’s been a busy year for GTT Communications, which has seen developments include:
2018 was a year of great growth and expansion for GTT, which saw it reach $1 billion in annualised revenues in the quarter ending 31 March 2018. Over the past 10 years, GTT has bought over 30 companies. Such change requires an agile and dynamic management team able to meet the large task GTT has ahead.
GTT also completed the acquisitions of Custom Connect, Interoute, and Accelerated Connections (ACI). Speaking specifically on the Interoute acquisition, Calder told Capacity last year: “[It] represents a major milestone in delivering on our purpose of connecting people across organisations, around the world and to every application in the cloud. 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 to our clients across the world.”
The KPN International acquisition will augment GTT’s scale and network reach. It will add depth to GTT’s Tier 1 global IP network in Europe across 21 countries, including longhaul fibre routes and metro rings in Frankfurt, London, Amsterdam and Paris. The deal also adds more than 400 strategic enterprise and carrier clients. GTT will be the preferred international network supplier for an additional 400 clients retained by KPN.
The KPN acquisition also complements GTT’s comprehensive portfolio of cloud networking services with similar best-in-class transport and infrastructure, internet, and wide area networking services.
Speaking to Capacity in October, GTT’s chief marketing officer, Gina Nomellini, said: “During the last 12 months alone, we have completed six acquisitions and we are well-positioned to meet our next revenue objective of $2 billion by early next year. Clients acquired through this M&A activity benefit from the expansive network reach and broad portfolio of network services offered by GTT. Therefore, each acquisition is typically an upsell opportunity for us.”
The KPN International acquisition is expected to close in the Q3 2019, subject to obtaining the required regulatory approvals.
Capacity Media has interviewed Rick Calder for the August/September issue of Capacity Magazine. If you’re not subscribed, CLICK HERE to receive your copy next month.