Global Telecom & Technology Inc., a global telecommunications carrier and leading network integrator, today announced it will acquire privately held, UK-based PacketExchange, a provider of customized Ethernet network solutions, for $20 million in cash and assumed debt.
The deal reflects GTT’s growth strategy for global expansion through organic growth and strategic acquisitions, and will result in a broader customer base of more than 1,200 clients worldwide, as well as an expanded portfolio of data services and offerings.
“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,” Eric Swank, CFO of GTT stated in the press release.
GTT will pay up to $20 million in cash and assumed debt to acquire PacketExchange and its subsidiaries. PacketExchange operates network assets throughout the U.S., Europe and Asia, with roughly 500 customers, and generating more than $20 million in annualized revenue post-acquisition. GTT expects the transaction to be immediately accretive.
Rick Calder, president and CEO of GTT, said the acquisition will quickly complement and benefit GTT and its business goals.
“The addition of PacketExchange strengthens our robust portfolio of telecom services, and these assets advance GTT’s strategy to rapidly scale our global telecom business. With this transaction, we will further leverage our unique intellectual capital and enhance our established reputation for providing reliable telecom services to our global customer base,” Calder stated.
The deal is expected to be completed by the second quarter of 2011.
For more information visit www.gt-t.net or www.packetexchange.net