October 03, 2017 — MCLEAN, Va.–(BUSINESS WIRE)–GTT Communications, Inc. (NYSE: GTT), the leading global cloud networking provider to multinational clients, announced today the acquisition of Transbeam, a provider of managed data and voice services, for $28 million in cash.
This strategic combination:
- Adds marquee U.S. clients in the hospitality, entertainment and retail segments
- Expands GTT’s scale and deepens its network footprint throughout the Northeast Corridor
- Augments GTT’s managed SD-WAN service with broadband, wireless and Ethernet over Copper capabilities, complementing the assets gained through its recent acquisition of Global Capacity
“The acquisition of Transbeam contributes highly complementary and cost-effective access services that enhance GTT’s leadership in managed hybrid networking,” said Rick Calder, GTT president and CEO. “Transbeam’s clients will have access to a comprehensive suite of cloud networking services, expansive reach to any location in the world and any application in the cloud, and our commitment to delivering an outstanding client experience by living our core values of simplicity, speed and agility.”
“This transaction delivers substantial benefits to our combined companies,” said Marc Sellouk, founder and CEO of Transbeam. “GTT gains diverse network capabilities in the Northeast and a set of marquee clients. We thank our employees for their outstanding service and our clients for their ongoing loyalty. We look forward to a seamless integration with GTT over the coming months.”
The acquisition is expected 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.
Q Advisors served as the exclusive financial advisor to Transbeam, and Robinson Brog Leinwand Greene Genovese & Gluck served as legal advisors.