Internet service provider GTT (Global Telecom and Technology) have announced that private equity and investment firms Crestview Partners and Aleph Capital Partners will be investing USD 175 million in GTT. With this investment, both investors aim to take debt loads off GTT in order to help them expand their global footprint.
According to GTT, the Interoute acquisition was an all-cash deal where they had to raise a considerable amount of debt. They further added that with Crestview and Aleph investing such a large sum, GTT will be able to reduce their debt component and think of global expansion.
Speaking about the investment in detail, Rick Calder, GTT President and CEO, commented:
Aleph and Crestview’s investment is a strong vote of confidence in our vision to create a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients’ growing demand for cloud networking services in Europe, the U.S. and across the globe.
Aleph Capital and Crestview Partners say that they have been investors with Interoute earlier and are now looking forward to extending business relations with GTT. Speaking about this, Hugues Lepic, CEO of Aleph. commented:
We are excited to become shareholders of GTT in this new phase of its growth and development. The strength of GTT and Interoute’s combined assets and capabilities creates a compelling opportunity to build a player with significant scale and international presence and drive further industry consolidation.