GTT Communications, a cloud networking provider to multinational clients, has signed a definitive purchase agreement to acquire Interoute, an operator of one of Europe's largest independent fiber networks and cloud networking platforms, for $2.3bn (AED8.4bn) in cash.
"The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organisations and around the world," said Rick Calder, GTT president and CEO. "This combination creates a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients' growing demand for distributed cloud networking across the globe."
Calder said following the successful, proven acquisition model, the company expects to complete this integration within three to four quarters post-close. "We are hopin achieve a post-synergy multiple of seven to eight times Adjusted EBITDA or better on a pro forma basis."
"This is an exciting next chapter for Interoute, GTT, our customers and our team," said Gareth Williams, Interoute CEO. "The combined assets and strengths of our two companies create a powerful portfolio of high-capacity, low-latency connectivity, and innovative cloud and edge infrastructure services to support our customers in the global digital economy."