GTT Communications has sold off its entire infrastructure division I Squared Capital, an independent global infrastructure investment firm, for US$2.15 billion. The infrastructure division consists of GTT’s business and activities providing Pan-European, North American, sub-sea and trans-Atlantic fibre network and data centre infrastructure services to customers.
The infrastructure division sale consists of selected network and data centre assets accumulated from several GTT acquisitions, including Interoute, Hibernia, and KPN International. Included in the deal is a 103,000 route kilometre fibre network with over 400 points of presence, spanning 31 metro areas and interconnecting 103 cities across Europe and North America; three transatlantic subsea cables, including GTT Express, the lowest latency route between Europe and North America; and fourteen Tier 3 data centres and over 100 colocation facilities.
“The divestment of the highly differentiated infrastructure division assets will ensure greater focus on network investment and development of high-speed infrastructure services under the more specialised ownership of this experienced investor,” commented Ernie Ortega, GTT CRO and interim CEO. “The deal enables GTT to reinforce its capex light business model as well as its cloud networking focus and will benefit both enterprise and infrastructure clients alike.”
Gautam Bhandari, managing partner at I Squared Capital stated, “Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds upon I Squared Capital’s overarching global digital infrastructure strategy and experience with complex carve-outs to expand the reach of our platforms across Asia, Europe and North America.”
The acquisition is expected to close, subject to satisfying all required regulatory approvals and contingencies included in the agreement, during the first half of 2021.
For more information, visit www.gtt.net