The sale includes a huge fibre network, data centres and subsea cables
On Friday, GTT Communications announced its intentions to tell its infrastructure division to I Squared Capital for $2.15 billion.
The sale includes a multitude of assets, including a 103,000 km fibre network that spans 400 points of presence across 31 metro areas and 103 cities in Europe and North America. Three transatlantic submarine cables are part of the deal, including the GTT Express cable (formerly the Hibernia Express) that links Canada to the UK and is currently the lowest latency route between the two continents. Fourteen Tier 3 data centers and over 100 colocation facilities are also included.
This is the first sale for GTT amongst a number of acquisitions over recent years; in 2016, GTT purchased Hibernia Networks for $590 million, and purchased Interoute for $2.3 billion in 2018. In total, the company has closed around ten acquisitions in the last few years, with around three times that many still awaiting completion.
But this aggressive acquisition spree has come at a significant cost. Now, the sale of GTT’s infrastructure division is set to go some way towards recouping these expenses and reducing company debt.
“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,” said Ernie Ortega, GTT’s chief revenue officer 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.”
Assuming regulatory approval is received, the deal is expected to close in the first half of next year.