Highlights:

  • GTT, a global technology communications group, sold its infrastructure division to an investor I Squared Capital.
  • The consultants of Analysys Mason advised GTT on the successful sale.
  • The deal was finalized for USD 2.15 billion.
  • Change of ownership will allow the infrastructure division to improve its business.

GTT sold its infrastructure division

GTT, a global technology communications group, sold its infrastructure division to an investor I Squared Capital. The deal was finalized for USD 2.15 billion. Analysys Mason consultants advised GTT on the successful sale and carved out its infrastructure assets across North America and Europe.

GTT’s product portfolio

GTT’s product portfolio of fiber and data center assets comprise three transatlantic submarine cables (containing GTT Express, the fastest transatlantic cable), several terrestrial pan-European cables, and 14 data centers. The company also owns 50 plus colocation centers, data centers, and 250 plus amplifier sites across North America and Europe.

Together, the infrastructure offers a portfolio of software-defined, cloud networking, and traditional wide area networking, global SIP trunking, internet and security services to multinational clients, helping them connect 100 plus major cities across North America and Europe.

Ernie Ortega, the interim CEO at GTT, commented: “GTT’s decision to sell its builds on the company’s strategy to restructure its business model while chipping away at its debt.” He further added, “The deal enables GTT to reinforce its Capex light business model as well as its cloud networking focus and will benefit both enterprise and infrastructure clients alike.”

Also, the change of ownership will allow the infrastructure division to improve its business “under the more specialized ownership of this experienced investor,” commented Ortega.

Investor, I Squared Capital

The investor I Squared Capital, edged out AustralianSuper, The Macquarie Group, and 3i Group to scoop the deal.

Gautam Bhandari, Managing Partner at I Squared Capital, commented: “Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds on overarching global digital infrastructure strategy and expands the reach of our platforms across Asia, Europe, and North America.”

I Squared Capital is a self-governing global infrastructure investment management organization that concentrates on investments in the transport, energy, infrastructure, and utility sectors.

Advisor Analysys Mason

The transaction needed a complex carve-out from GTT that was advised by Analysys Mason. Analysys Mason is an international consulting organization that concentrates on telecom, technology, and media industries. The organization performed the technical and commercial due diligence on the infrastructure assets, helped define strategic development opportunities, and supported business planning for the future InfraCo and the strategy for its setup.

Legal advisors from Goodwin Proctor, financial advisors from Credit Suisse and Goldman Sachs also advised seller GTT.

The buyer I Squared Capital received technical and commercial advice from Solon; apart from financial advisor Morgan Stanley, borrower’s counsel Latham and amp; Watkins, debt advisor Rothschild, legal advisor Linklaters, and tax and accounting advisor KPMG participating as the dealmakers in the whole deal.