GTT to buy Hibernia Networks for $590m
GTT Communications will buy subsea cable operator Hibernia Networks for $515m in cash and the rest in shares
GTT Communications has signed a definitive agreement to acquire Hibernia Networks, the owner of terrestrial and subsea fibre assets including Hibernia Express.
The acquisition will cost a total of $590 million, made up of $515 million in cash and 3.3 million shares of GTT common stock, valued at $75 million.
Rick Calder, GTT president and CEO, said: “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.”
Bjarni Thorvardarson, Hibernia Networks’ CEO, said: “GTT’s acquisition of Hibernia Networks provides great benefit to the entirety of our customer base as well as our two organisations.”
Calder added: “Hibernia Networks has a demonstrated track record of growth, and brings unique, strategic network assets featuring high-bandwidth, low latency connectivity.”
The two companies will integrate their operations, a project that will take two or three quarters after the deal is closed, he said.
Thorvardarson said: “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 companies expect to close the transaction by the end of first quarter 2017, subject to regulatory approval and other conditions.