GTT Communications, Inc., the global cloud networking provider to multinational clients, has announced that it will acquire Interoute, London-based operator of one of Europe’s largest independent fiber networks and cloud networking platforms, for approximately €1.9 billion ($2.3 billion) in cash. GTT expects to close the transaction within three to six months. Operational and strategic integration is expected to be completed within three to four quarters upon deal closure and the firm is aiming for a post-synergy multiple of seven to eight times Adjusted EBITDA (€165 million as of September 2017) or better on a pro forma basis.

Interoute has received the strong support of its shareholders, including the Sandoz Family Foundation, Aleph Capital and Crestview Partners in its strategy of building and consolidating the European fiber, cloud and connectivity markets. The acquisition by GTT is said to combine the strategic inclinations of both to significantly increase scale, both in Europe and internationally.

GTT, which is currently valued at $2.09 billion, believes the acquisition would enhance its cloud connectivity platform with the addition of 15 data centers, 17 virtual data centers and 51 colocation facilities.

About Interoute

Interoute is the owner operator of one of Europe’s largest network and a global cloud services platform, which encompasses over 70,000 km of lit fibre, 15 data centres, 17 Virtual Data Centres and 33 colocation centres, with connections to 195 additional partner Data Centres. Its full-service Unified ICT platform serves a myriad of customers, including start-ups and international conglomerates, global internet giants, governments, universities, as well as every major European telecommunications service provider and major operators across the world.