Some cloud networking providers are expanding their footprint to make it faster and easier for companies to access their services, particularly where it concerns hybrid networking. A managed hybrid network intelligently prioritizes and routes traffic where and when needed, and can help add bandwidth and alleviate the strain on network capacity.
GTT Communications, Inc. (NYSE: GTT), for example, has announced the acquisition of managed data and voice service provider Transbeam for $28 million in cash, which improves its scale and increases its network footprint across the Northeast Corridor. The acquisition will also improve GTT’s ability to provide hybrid networking services.
“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.”
At the same time, Transbeam augments GTT’s managed SD-WAN service by providing wireless, broadband and Ethernet over Copper capabilities, enhancing the assets the company gained through its recent acquisition of Global Capacity. With this strategic acquisition, GTT has added major U.S. clients in the entertainment, hospitality and retail segments.
Marc Sellouk, founder and CEO of Transbeam, also spoke about the acquisition.
“This transaction delivers substantial benefits to our combined companies,” said Mr. Sellouk. “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 should generate a post-synergy adjusted EBITDA of 5.0x or lower, while integration and cost synergies are expected to be achieved within two quarters after the deal closes.
Q Advisors served as the exclusive financial advisor to Transbeam for this acquisition, and Robinson Brog Leinwand Greene Genovese & Gluck served as legal advisors for the company.
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