GTT is continuing its M&A quest this week to enhance its facilities-based network approach, announcing its $28 million acquisition of Transbeam, a managed data and voice provider.
Like earlier acquisitions GTT has made, the Transbeam deal will enhance the service provider’s customer base in key markets, including the hospitality, entertainment and retail segments.
The acquisition, which is the third GTT made this year, will also enhance its scale while deepening its network footprint throughout the Northeast market.
Another key focus will be how the acquisition will enable GTT to address more SD-WAN customer needs.
In April, GTT introduced its SD-WAN service to enhance the breadth of its growing cloud networking services line for its enterprise business customer base.
As a starting point, GTT could leverage the 50,000 locations equipped with some form of broadband access service and the Transbeam will enhance those capabilities.
Transbeam brings together a broader set of broadband, wireless and Ethernet over Copper (EoC) facilities that GTT can use to deliver SD-WAN across its growing network footprint in the United States. These facilities complement the assets GTT gained through its recent acquisition of Global Capacity.
Additionally, GTT will also be able to leverage and build upon Transbeam’s own SD-WAN service set that it introduced in February.
GTT said it expects the acquisition to generate a post-synergy adjusted EBITDA of 5.0x or lower, with integration and cost synergies to be achieved within two quarters after close.