GTT to acquire European fiber network operator Interoute for $2.3 billion in cash

Monday, February 26, 2018

U.S. telecommunications company and internet provider GTT Communications is buying European fiber network operator Interoute in a deal worth $2.3 billion.

London-based Interoute operates one of Europe’s biggest fiber networks and associated cloud services, spanning more than 70,000 kilometers and 29 countries, according to a Bloomberg report last year that outlined the company’s plan to find a buyer.

McLean, Virginia-based GTT operates a similar subsea and terrestrial fiber network, alongside a range of enterprise-focused services. GTT, which trades on the New York Stock Exchange (NYSE), has seen its shares skyrocket over the past couple of years, hitting a record high of $48 per share last week. The company said that it will pay $2.3 billion in cash to acquire Interoute, thus creating a “powerful portfolio of high-capacity, low-latency connectivity, and innovative cloud and edge infrastructure services,” according to a press release.

Photo courtesy of Wonderlane.

Source: VentureBeat (link opens in a new window)