McLean-based GTT Communications Inc. to buy Interoute

Published February 26, 2018 by Robert Powell, III

McLean-based cloud networking provider GTT Communications Inc.  plans to acquire London-based Interoute, which operates of one of Europe’s largest independent fiber networks and  cloud networking platforms, for about $2.3 billion in cash.

GTT said the deal would expands global IP network with a fiber footprint interconnecting 126 cities in 29 countries.

The McLean company also said the acquisition would add 15 data centers, 17 virtual data centers and 51 colocation facilities, enhancing GTT’s cloud connectivity platform.

The deal is also expected to add more than 1,000 customers primarily in Europe.

“The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organizations and around the world,” Rick Calder, GTT’s president and CEO, said in a statement.

GTT said it has received committed debt financing for the transaction from a group of financial institutions and committed equity financing of $250 million from its largest institutional investor, The Spruce House Partnership, and Acacia Partners.

GTT expects the transaction to close in three to six months, subject to customary regulatory approvals.