GTT Communications To Acquire One Source Networks - Quick Facts

(RTTNews) - GTT Communications, Inc. (GTT), the leading global cloud networking provider to multinational clients, announced a definitive agreement to acquire One Source Networks, a provider of global data, Internet, Session Initiation Protocol trunking and managed services. The company will pay $175 million for the acquisition, comprised of approximately $165 million in cash and approximately $10 million in GTT common stock, plus any adjustments for net working capital. The companies expect to close the transaction in late October, 2015.

Rick Calder, GTT CEO, said: "This transaction accelerates our growth strategy by adding deep relationships with a diverse blue-chip client base and broadening our portfolio of cloud networking services. Given our track record of successful acquisitions, we expect to complete integration in two quarters post-close and achieve a post-synergy multiple of 7 times Adjusted EBITDA or better on a pro forma basis."

GTT said, upon closing the transaction, the company will achieve its previously announced next financial objectives of $400 million in revenue and $100 million in Adjusted EBITDA.