GTT Communications agreed to acquire Global Capacity, a provider of enterprise network connectivity solutions, for $100 million in cash and 1.85 million shares of GTT common stock, to be issued to the sellers at closing.
Global Capacity, which is based in Waltham, Mass., addresses a range of enterprise network issues including difficulty in load sharing traffic across a mix of access connections, complex, static and manual network configurations that inhibit mapping to business requirements and lack of application visibility and control over connections. Global Capacity has a partnership with VeloCloud. that unifies network management across disparate network technologies, including Ethernet, MPLS, broadband and LTE, whether these are on the Global Capacity network, a competing network or a combination of the two. This is designed to enable a more agile and responsive hybrid WAN solution and to offer a simplified path for migration from an existing network architecture.
In January, Global Capacity launched the Ethernet Multi-Cloud Connect service, a virtual network service based on its One Marketplace software-defined network platform that allows enterprises to build multiple cloud services from a single port to access hybrid and multi-cloud solutions across multiple locations. The Ethernet Multi-Cloud Connect service employs an interconnection architecture with software orchestration to simplify multi-cloud connectivity and improve service performance. The solution enables businesses to connect to cloud locations or select from a list of interconnected One Marketplace Cloud destinations, including AWS, Google Cloud, Microsoft Azure and twenty cloud providers on the Equinix Cloud Exchange.
GTT said the acquisition will add marquee clients in the healthcare, application service provider, retail and carrier markets, adding highly complementary recurring revenue streams. GTT also operates an SD-WAN service based on Velocloud.
Global Capacity also operates an extensive on-net Ethernet over Copper infrastructure that reaches over 9.6 million U.S. commercial addresses, from 41 data centers and 1,750 Central Office points of presence. Global Capacity acquired Megapath's wholesale business and national colocation aggregation network in 2015.
“The acquisition of Global Capacity accelerates GTT’s growth strategy and underscores our commitment to connecting people across organizations and around the world,” said Rick Calder, GTT president and CEO. “GTT gains new marquee clients, enhanced network reach and scale, and a great team of employees to drive outstanding client experience, through our core values of simplicity, speed and agility. After integration, we expect to achieve our previously announced, next financial objectives of $1 billion in revenue and $250 million in Adjusted EBITDA.”
“This transaction further advances the breadth, depth and ease of deploying connectivity services for our customers,” commented Jack Lodge, president of Global Capacity. “GTT’s global network reach and extensive portfolio of managed services are a compelling complement to our connectivity platform, resulting in substantial benefits for our carrier and enterprise customers. Together, we anticipate growth and success for our customers, employees, and partners.”
http://www.globalcapacity.com
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