GTT completes €50m KPN International acquisition
GTT Communications (GTT) has completed its €50 million acquisition of KPN International, a division of KPN NV, a provider of global IP network services for both carrier and enterprise clients.
“The great client base contributed by this acquisition, combined with a talented group of employees, strengthens GTT’s presence in Europe,” said Rick Calder, president and CEO, GTT. “We are pleased to welcome this blue-chip roster of clients from KPN International who can now access GTT’s expansive global network and comprehensive service portfolio, as we deliver on our purpose of connecting people across organisations, around the world and to every application in the cloud.”
Through the acquisition GTT adds more than 400 enterprise and carrier clients to its portfolio. In addition, GTT will become the preferred international network supplier for hundreds additional clients retained by KPN. Also, by adding KPN’s wide area networking, internet and transport services to GTT’s cloud networking services, expands the company global IP network. Lastly, the deal contributes to GTT’s sales, operations, service delivery and client service organisation.
GTT paid close to €50 million is cash for KPN. It said that is will “continue to evaluate options to optimise the GTT capital structure, including various and opportunistic financing and refinancing options.”
Last week, GTT 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.”