GTT Communications to buy Hibernia Networks for $590M
The merger and acquisition season isn’t over yet, as global carrier GTT Communications has agreed to buy Hibernia Networks for $590 million (€542 million).
The transaction consists of $515 million in cash and 3.3 million shares of GTT common stock, to be issued to the sellers at closing, valued at $75 million.
Other network consolidation deals announced this month include CenturyLink’s purchase of Level 3, and Windstream’s merger with EarthLink (see CenturyLink and Level 3 confirm $34B megamerger and Windstream and EarthLink to merge in $1.1B deal).
Hibernia is a provider of high-speed network connectivity and owner of terrestrial and subsea fibre assets including Hibernia Express, the lowest latency transatlantic cable system. The carrier’s global fibre network, which is optimised for latency performance, comprises more than 220 points of presence in 25 countries, with unique routes for added diversity and resiliency.
With its emphasis on low latency connectivity and video transport, Hibernia has been particularly successful in attracting financial customers and media companies, such as broadcasters, cable companies and OTT providers.
GTT says the combination will add breadth and depth to its global network, and enable it to offer new services including optical and low-latency transport, video and content delivery network (CDN) services.
“This acquisition accelerates GTT’s growth strategy by expanding our portfolio of cloud networking services, significantly increasing the scope and power of our global network, and growing our multinational client base,” said Rick Calder, GTT president and CEO. “Hibernia Networks has a demonstrated track record of growth, and brings unique, strategic network assets featuring high-bandwidth, low latency connectivity. We are very excited to welcome Hibernia Networks’ clients and talented team members to GTT.”
“GTT’s acquisition of Hibernia Networks provides great benefit to the entirety of our customer base as well as our two organisations,” said Bjarni Thorvardarson, Hibernia Networks’ chief executive officer. “GTT gains world class global fibre assets, including ultra-low latency routes between key financial markets, as well as optical, low latency and content services, and exceptional employees with a proven track record of network and commercial leadership, and exemplary customer service.”
The parties expect to close the transaction by the end of first quarter 2017, subject to certain regulatory approvals and other customary closing conditions.