- GTT Communications (GTT +6.8%) has a definitive deal to purchase Interoute, operator of one of Europe's biggest independent fiber networks and cloud platforms.
- GTT will pay about €1.9B in cash (around $2.3B) in the deal.
- Interoute's network covers more than 400 points of presence across 24 metro areas, interconnecting 126 cities across 29 countries. It comprises 15 data centers, 17 virtual data centers and 51 co-location facilities.
- The deal also adds more than 1,000 mostly European strategic enterprise and carrier clients to GTT.
- Interoute posted revenues of €718M for the 12 months ended Sept. 30.
- "Following our successful, proven acquisition model, we expect to complete this integration within three to four quarters post-close and achieve a post-synergy multiple of seven to eight times Adjusted EBITDA or better on a pro forma basis," says GTT CEO Rick Calder.
- Conference call about the deal to come Thursday at 10 a.m. ET.
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Original article