Cloud networking services provider GTT Communications, Inc. (NYSE:GTT) has purchased Perseus, which provides high-speed network connectivity to customers that include financial and e-commerce companies. GTT says it paid $37.5 million for its new assets, plus the assumption of approximately $3 million in capital leases.
In addition to providing access to new customers in financial service and e-commerce, the addition of Perseus will add new points of presence and routes to the GTT's global Tier 1 IP backbone. The additional footprint includeskey markets in Latin America, Asia Pacific, India, and South Africa. The new routes include Pacific Express, the new low-latency route between Chicago and Tokyo. GTT expects that the purchase price will reflect a multiple of post-synergy adjusted EBITDA of 5.0X or lower, with integration and cost synergies to be achieved within two quarters.
"The acquisition of Perseus demonstrates our commitment to connecting people – across organizations and around the world – by strengthening our low latency service offerings and accelerating our expansion into key high growth financial markets," said Rick Calder, GTT president and CEO. "We look forward to serving our new clients with simplicity, speed, and agility."
GTT has more aggressively pursued expansion through acquisition in the past year. The company purchased transatlantic submarine network operator Hibernia Networks last November (see "GTT to buy Hibernia Networks for $590 million").
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