GTT, a network service integrator, has instantly expanded its international business by acquiring PacketExchange for $20 million in cash and debt.
The acquisition of PacketExchange is significant to GTT in that it's the first acquisition the service provider has made since it suspended its acquisition of Global Capacity. M&A has been one of the tools GTT has been using to expand its domestic and international growth and the PacketExchange acquisition certainly in the spirit of that strategy.
UK-based PacketExchange, a provider of Ethernet-based Internet exchange services, currently serves about 500 wholesale carrier and enterprise customers with 65 points of presence in Europe, Asia and North America.
Expected to close by the end of Q2 2011, GTT said that the PacketExchange deal will generate over $20 million in annualized revenue and "drive significant incremental EBITDA."
PacketExchange provides two benefits to GTT. Not only will it gain an additional 1,200 customers, but also an expanded set of data services, including Global Ethernet, Global Peering, Collaborative Networking, Cloud Networking, Dedicated Internet Access and Transit as well as Network Infrastructure-as-a-Service, complete end-to-end managed network solutions.
To ensure no customer disruptions, GTT plans to quickly integrate PacketExchange's network assets, services and clients into its proprietary Client Management Database (CMD).
For more:
- see the release
- Tech Crunch has this article
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