US-based global cloud networking provider GTT Communications has signed a definitive agreement to sell its infrastructure division to I Squared Capital, an independent global infrastructure investment firm, for USD2.15 billion. A press release says the division being offloaded ‘consists of GTT’s business and activities of providing pan-European, North American, subsea and trans-Atlantic fibre network and data centre infrastructure services’ to multinational clients.
The infrastructure division sale includes selected network and data centre assets accumulated from several GTT acquisitions, including Interoute, Hibernia, and KPN International, that comprise:
• a 103,000 route kilometre fibre network with over 400 points of presence, spanning 31 metro areas and interconnecting 103 cities across Europe and North America;
• three transatlantic subsea cables, including GTT Express, the lowest latency route between Europe and North America;
• 14 Tier 3 data centres and over 100 colocation facilities.
GTT’s interim CEO Ernie Ortega said: ‘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 specialised ownership of this experienced investor…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.’ Gautam Bhandari, managing partner at I Squared Capital stated: ‘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.’
The deal is expected to close, subject to satisfying all required regulatory approvals and contingencies, during the first half of 2021.
GTT Communications provides a comprehensive portfolio of cloud networking services over its global Tier 1 IP network that includes traditional and software-defined wide area networking, global SIP trunking, advanced solutions, security and internet services.