For years, enterprises have been struggling to connect to high-value cloud and business destinations due to market complexities. As such, many multinationals are now seeking help from third-party providers offering simplified connectivity solutions.

One such company, GTT Communications, Inc. (NYSE: GTT), recently announced an agreement to acquire Global Capacity, a move that will significantly enhance GTT’s ability to streamline connectivity services deployment for its customers.

“The acquisition of Global Capacity accelerates GTT’s growth strategy and underscores our commitment to connecting people across organizations and around the world,” stated Rick Calder, GTT president and CEO. “GTT gains new marquee clients, enhanced network reach and scale, and a great team of employees to drive outstanding client experience, through our core values of simplicity, speed and agility. After integration, we expect to achieve our previously announced, next financial objectives of $1 billion in revenue and $250 million in Adjusted EBITDA.”

This acquisition will expand GTT’s client base by adding marquee clients in the application service provider, healthcare, retail and carrier markets. It will also enhance GTT’s Managed SD-WAN service by adding diverse access options, including extensive on-net Ethernet over Copper infrastructure. What’s more, the acquisition will provide expanded scale and network reach, with lastmile connectivity to over 9.6 million U.S. commercial addresses from 1,750 Central Office points of presence and 41 data centers.

“This transaction further advances the breadth, depth and ease of deploying connectivity services for our customers,” explained Global Capacity president Jack Lodge. “GTT’s global network reach and extensive portfolio of managed services are a compelling complement to our connectivity platform, resulting in substantial benefits for our carrier and enterprise customers. Together, we anticipate growth and success for our customers, employees, and partners.”

F. Francis Najafi, founder and CEO of Global Capacity’s parent company Pivotal Group, also commented on the acquisition.

“With this agreement, we are combining two highly complementary organizations with closely aligned core values and operating strategies,” said Najafi. “This combination creates one of the most innovative global cloud networking companies in the industry.”

Global Capacity has agreed to a purchase price of $100 million in cash, and 1.85 million shares of GTT common stock which will be issued to the sellers at closing. GTT anticipates that Global

Capacity’s revenue will close at $200 million, net of pro forma adjustments, and that this 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 to three quarters after the deal closes.

GTT and Global Capacity expect the deal to close by the end of 3Q17, subject to regulatory approvals and additional customary closing conditions. The cash portion of the consideration will be funded at close by GTT with funds from the debt offering completed in May. Perella Weinberg Partners LP served as the exclusive financial advisor for Global Capacity during this transaction.

To learn more about GTT, click here. For more information about Global Capacity, click here.