GTT Communications, Inc. (NYSE: GTT) has reported the signing of a definitive purchase agreement to sell its infrastructure division to I Squared Capital for USD 2.15 Billion. The infrastructure Division consists of GTT’s business and activities of providing Pan-European, North American, fiber network and data center infrastructure services to customers. GTT has a comprehensive portfolio of cloud networking services with traditions and software wide area networking, security, internet services etc.
“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 specialized 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 company will send cash payment of USD 2.02 Billion at closing of the deal and total deferred payments of up to USD 130 Million which is based on financial results.