Global Telecom & Technology even more global via PacketExchange acquisition

Telecom carrier and network integrator Global Telecom & Technology Inc. (OTCBB:GTLT) says it has agreed to acquire privately held PacketExchange, a UK-based Ethernet network services provider. GTT will pay up to $20 million in cash and assumed debt to acquire PacketExchange in a deal GTT expects will close by the end of the second quarter of 2011.

Telecom carrier and network integrator Global Telecom & Technology Inc. (OTCBB:GTLT) says it has agreed to acquire privately held PacketExchange, a UK-based Ethernet network services provider. GTT will pay up to $20 million in cash and assumed debt to acquire PacketExchange in a deal GTT expects will close by the end of the second quarter of 2011.

PacketExchange serves approximately 500 customers throughout the US, Europe, and Asia. GTT expects the operations to generate more than $20 million in annualized revenue post-acquisition and drive significant incremental EBITDA.

“GTT has experience seamlessly integrating complex telecom acquisitions, and the process with PacketExchange, already underway, will be no different. This is another example of how we can simultaneously build a broader, deeper, and more sophisticated customer base while greatly enhancing our positive cash flow through our M&A activities,” commented Eric Swank, GTT’s CFO. “We have established an attractive debt-financing package to finance the acquisition, and we expect the transaction to be immediately accretive.”

PacketExchange operates network facilities in Amsterdam, Brussels, Chicago, Dallas, Dublin, Frankfurt, Hong Kong, London, Los Angeles, Manchester, Miami, New York, Palo Alto, Paris, San Francisco, San Jose, Seattle, Secaucus (NJ), Singapore, Washington, DC, and Yokohama. Its acquisition will provide greater scale and a broader global customer base of over 1,200 worldwide clients, GTT asserts. It also will expanded GTT’s data service portfolio which will now include global Ethernet, global peering, collaborative networking, cloud networking, dedicated Internet access and transit as well as network infrastructure-as-a-service.

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