Bjarni Thorvardarson, Hibernia
McLean, VA - GTT Communications, the cloud networking provider, has announced a definitive agreement to acquire Hibernia Networks, a provider of network connectivity solutions and owner of terrestrial and subsea fiber assets including Hibernia Express, the low latency transatlantic cable system.
The $590 million transaction consists of $515 million in cash and approximately 3.3 million shares of GTT common stock, to be issued to the sellers at closing, valued at $75 million.
- Adds breadth and depth to GTT's global Tier 1 IP network with owned and leased dark fiber assets including five owned subsea cables and eight cable landing stations
- Expands GTT's cloud networking portfolio, composed of wide area networking, internet, managed services and voice services, with the addition of optical and low latency transport, video and CDN services
- Adds a video transport platform servicing content rights holders, broadcasters, cable companies and OTT providers
- Grows GTT's client base, adding marquee clients with depth in the financial services, media and entertainment, web-centric and service provider segments, which will remain strategic verticals of focus for GTT
- Enhances GTT's financial profile by adding a substantial, highly complementary recurring revenue business with strong cash flow characteristics
Bjarni Thorvardarson, Hibernia Networks' chief executive officer said: "Hibernia Networks clients around the world will benefit from the expansive reach of GTT's Tier 1 IP network, the broader portfolio of products and services, improved scale, and the company's expertise in delivering cloud networking solutions and managed services to multinational clients."
The parties expect to close the transaction by the end of first quarter 2017, subject to certain regulatory approvals and other customary closing conditions.