GTT Communications based in McLean, Virginia, a global cloud networking provider to multinational clients, announced the acquisition of Perseus, a provider of high-speed network connectivity that serves major financial and e-commerce companies worldwide.
GTT stated that the purchase price for Perseus was $37.5 million, plus the assumption of approximately $3 million in capital leases. GTT anticipates that the purchase price will represent a multiple of post-synergy adjusted EBITDA of 5.0x or lower, with integration and cost synergies to be achieved within two quarters.
GTT noted that the strategic combination with Perseus is intended to deliver benefits including:
1. Extending the reach of its global, Tier 1 IP backbone via new PoPs and routes connecting key markets across Latin America, Asia Pacific, India and South Africa, including Pacific Express, the new low latency route between Chicago and Tokyo.
2. Increasing its customer base, bringing clients in the financial service and e-commerce segments.
3. Expanding its position as a provider of ultra-low latency services, as well as augmenting its cloud networking portfolio with financial market data services.
Perseus operates a global multipoint Ethernet network and 75 PoPs sited in 18 countries and provides connectivity to over 200 exchanges. It maintains a network operations centre in Galway, Ireland. Perseus offers solutions including LiquidPath trading services, PrecisionSync timing services, private managed services and wireless, microwave-based connectivity.
- In January of this year, GTT completed its acquisition of Hibernia Networks, operator of a global network, including extensive subsea cable systems. Under the terms of an agreement announced in November 2016, GTT was to acquire Hibernia for $590 million, including $515 million in cash and approximately 3.3 million shares of GTT common stock valued at around $75 million.
