GTT Buys Interoute for $2.3 Billion to Gain Europe Fiber Network
GTT Buys Interoute for $2.3 Billion to Gain Europe Fiber Network
(Bloomberg) -- GTT Communications Inc. agreed to acquire Interoute Communications Ltd. for 1.9 billion euros ($2.3 billion) in cash to gain control of one of the largest independent fiber and cloud-networking platforms in Europe.
The acquisition gives McLean, Virginia-based GTT about 72,000 fiber-route kilometers (44,738 miles), spanning 29 countries, according a statement Monday.
The purchase tops the 1.65 billion-euro value estimated in October by insiders, for the cloud-services operator controlled by the Sandoz Family Foundation. Demand for more fiber-optic network capacity has surged as consumers watch more live sports and shows on their phones. And with the upcoming shift to fifth-generation, or 5G, wireless networks in the coming years, the boost in data traffic will make fiber even more critical.
Interoute’s clients include BT Group Plc, Vodafone Group Plc and AT&T Inc. The Sandoz Family Foundation owns 70 percent of Interoute, while Aleph Capital and Crestview Partners together own 30 percent.
--With assistance from Scott Moritz
To contact the reporter on this story: Jessica Brice in Sao Paulo at jbrice1@bloomberg.net.
To contact the editor responsible for this story: Rebecca Penty at rpenty@bloomberg.net.
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