GTT completes acquisition of Global Capacity in cash and stock deal.
M2 EQUITYBITES-September 19, 2017-GTT completes acquisition of Global Capacity in cash and stock deal
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GTT Communications Inc (NYSE:GTT), a cloud networking provider to multinational clients, announced on Monday that it has completed its acquisition of Global Capacity, a provider of networking services connecting enterprises to high-value cloud and business destinations.
This acquisition had a purchase price consisting of USD100m in cash and 1.85 million shares of GTT common stock, which was issued to the sellers at closing.
Reportedly, GTT funded the cash portion of the transaction with the proceeds from the debt offering completed in May 2017.
Also, GTT expects to complete the integration of Global Capacity within two to three quarters after closing and upon integration, to achieve its previously announced, next financial objectives of USD1.0bn in revenues and USD250m in adjusted EBITDA.
According to GTT, this transaction accelerates its growth strategy and advances its commitment to connecting people across organisations and around the world. Also, the combined client base will benefit from an expanded and talented team that is focused on delivering superior client service by living GTT's core values of simplicity, speed and agility.
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