February 26, 2018 / 1:17 PM / 7 months ago

U.S. cloud networking firm GTT to buy Europe's Interoute for $2.3 billion

(Reuters) - U.S. cloud networking company GTT Communications Inc said on Monday it would buy privately held European peer Interoute in an all-cash deal valued at about 1.9 billion euros, or $2.3 billion.

GTT said Interoute operates one of Europe’s largest independent fiber networks and that the deal would expand its network to interconnect 126 cities across 29 countries.

GTT, which has a market value of about $2.09 billion, said the deal would enhance its cloud connectivity platform with the addition of 15 data centers, 17 virtual data centers and 51 colocation facilities.

London-headquartered Interoute reported revenue of 718 million euros ($884.4 million) for the 12 months ended Sept. 30, 2017.

GTT said it had received committed debt financing from financial firms and committed equity financing of $250 million from its largest institutional investor, The Spruce House Partnership and Acacia Partners.

GTT expects the transaction to close in three to six months.

Goodwin Procter LLP was GTT’s legal adviser. Credit Suisse and Evercore advised the selling shareholders, and Freshfields Bruckhaus Deringer was Interoute’s legal adviser.

Reporting by Munsif Vengattil in Bengaluru; Editing by Savio D'Souza

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