Jessica Brice and Scott Moritz (Bloomberg) -- GTT Communications Inc. agreed to acquire Interoute Communications Ltd. for 1.9 billion euros ($2.3 billion) in cash to gain control of one of the largest independent fiber and cloud-networking platforms in Europe.
The acquisition gives McLean, Virginia-based GTT about 72,000 fiber-route kilometers (44,738 miles), spanning 29 countries, according a statement Monday. GTT also picks up 15 data centers, boosting its cloud storage and data-exchange holdings in Europe.
The purchase price tops the 1.65 billion-euro value that insiders estimated Interoute could be worth in October. Demand for more fiber-optic network capacity has surged as consumers watch more live sports and shows on their phones. And with the upcoming shift to fifth-generation, or 5G, wireless networks in the coming years, the boost in data traffic will make fiber even more critical.
Interoute’s clients include BT Group Plc, Vodafone Group Plc and AT&T Inc. The Sandoz Family Foundation controls the company with 70 percent, while Aleph Capital and Crestview Partners together own 30 percent.
GTT shares rose as much as 8.9 percent to $52.25 in New York Monday, an all-time high for the company. The stock rallied 63 percent in 2017.
