February 27, 2018

GTT to acquire Interoute in a USD 2.3B deal

The acquisition seeks to meet growing demand for distributed cloud network across Europe by leveraging Interoute’s expertise in the region.

Tech giants

Global cloud networking giant GTT (Global Telecom and Technology) are all set to acquire cloud service platform provider Interoute in a USD 2.3B deal. With this acquisition, GTT will provide low-latency connectivity along with cloud and edge infrastructure services to businesses in European markets.

GTT say that multinationals in Europe have been demanding a distributed network for cloud services and responding to the same was imperative. They also claim that with Interoute’s wide network of data centers and POPs (point of presence), GTT will be able to penetrate Europe’s top-tiered business segments.

As per the acquisition, GTT say that they will be adding 15 data centers, 17 virtual data centers, 51 co-location facilities and more than 400 POPs across 29 countries. They also said that GTT will be leveraging Interoute’s fiber network spanning 72,000 km to mitigate latency and connectivity issues.

Speaking about the acquisition, Rick Calder, President and CEO of GTT, commented:

The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organizations and around the world.

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.

According to Interoute, the acquisition strengthens their position in the market. They also say that partnering with GTT complements their offerings and portfolio.

Explaining the same, Gareth Williams, CEO of Interoute, added:

This is an exciting next chapter for Interoute, GTT, our customers and our team. 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.

GTT say that the all-cash deal is set for regulatory terms and conditions and will close very soon.