GTT instructs Credit Suisse and Goldman Sachs for infrastructure unit sale
GTT Communications has instructed Credit Suisse and Goldman Sachs as its financial advisors for the potential sale of its infrastructure division.
The news follows the announcement made during the company’s 2019 third quarter results. In the filing GTT the company stated; “GTT has expanded the scope of its non-strategic and non-core asset divestiture exploratory process to include the Company’s highly differentiated pan-European fibre assets, subsea transatlantic fibre and data centre infrastructure, which the Company acquired as part of the Interoute and Hibernia acquisitions.”
Speaking on the potential sale of GTT assets, Rick Calder (pictured), GTT president and CEO, said: “The appointment of Credit Suisse and Goldman Sachs is an important step in our process to explore the sale of our Infrastructure Division. This potential divestiture in no way alters the execution of GTT’s core strategy of providing cloud networking services to large and multinational clients as we deliver on our purpose of connecting people to any location in the world and to every application in the cloud.”
The news comes as company reported a decline of 6.4% in comparison to Q3 2018 numbers, further, this was down 3.2% compared with Q2 of 2019 due in part to a 0.9% decline in monthly recurring cash revenue, a 0.8% decline from foreign currency, a 0.7% decline in non-recurring other revenue.
Earlier this year, the telco found itself in trouble when three US law firms threatened class action law suits against GTT over its €1.9 billion acquisition last year of Interoute. The different law firms cite the fall in share price since GTT revealed its challenges with integrating Interoute, and the fact that Interoute had shifted to a different marketing position before GTT took it over.