GTT Communications is giving its cloud networking portfolio a shot in the arm with the planned acquisition of London-based Interoute for $2.3 billion.
"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 in Europe, the U.S. and across the globe," said Rick Calder, president and CEO of GTT, in a statement. "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."
GTT said it will leverage Interoute, which has a market value of just over $2 billion, to significantly expand its footprint in Europe, strengthen its software-defined WAN capabilities and add dozens of data centers and co-location facilities to its portfolio.
Specifically, the acquisition will add 15 data centers, 17 virtual data centers and 51 co-location facilities to GTT, enhancing its cloud connectivity platform.
The McLean, Va.-based vendor also plans to acquire Interoute's infrastructure, edge and hosted services.
Interoute reported revenue of $884 million for the 12 months ending Sept. 30, 2017.
Interoute CEO Gareth Williams said in a statement that 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."