GTT Communications to sell infrastructure division to I Squared Capital
Cloud networking services provider GTT Communications, Inc. (NYSE: GTT) say it has agreed to sell its infrastructure division to infrastructure investment firm I Squared Capital for $2.15 billion. The assets include those picked up via GTT’s own acquisitions of such companies as Interoute, Hibernia, and KPN International.
Overall, I Squared Capital will acquire a 103,000-route-km fiber network with more 400 points of presence that spans 31 metro areas and interconnects 103 cities across Europe and North America; three transatlantic submarine cables, including GTT Express; and 14 Tier 3 data centers and over 100 colocation facilities.
The acquisition, subject to the usual regulatory approvals as well as contingencies included in the agreement, is expected to close during the first half of 2021. The purchase price includes an upfront cash payment of $2.02 billion at closing and total deferred payments of up to $130 million based on certain financial results.
The sale of the infrastructure assets would seem an about-face for the company, which went on an infrastructure buying spree over the past few years. The KPN International acquisition closed only last December. Besides the deals for Interoute, HIbernia, and KPN International, other recent acquisitions include Access Point and Custom Connect. These acquisitions and others came under the tenure of Richard D. Calder, Jr.; it was announced in May that Calder would "depart the company" effective June 1.
“The divestment of the highly differentiated infrastructure division assets will ensure greater focus on network investment and development of high-speed infrastructure services under the more specialized ownership of this experienced investor,” commented Ernie Ortega, GTT CRO and interim CEO. “The deal enables GTT to reinforce its capex-light business model as well as its cloud networking focus and will benefit both enterprise and infrastructure clients alike.”
“Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds upon I Squared Capital’s overarching global digital infrastructure strategy and experience with complex carve-outs to expand the reach of our platforms across Asia, Europe, and North America,” added Gautam Bhandari, managing partner at I Squared Capital.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.