A group of investors, led by Aleph Capital Partners LLP and Crestview Partners, has committed to invest $175 million in GTT Communications common stock.
The investment will take place at the closing of the acquisition of Interoute by GTT, which was previously announced in February. Aleph and Crestview are significant shareholders of Interoute, and they will invest a portion of their proceeds from the sale of Interoute into the combined company. Per the terms of GTT’s debt financing commitment for the Interoute acquisition, the equity commitment will reduce the amount of debt to be issued by GTT to fund the acquisition on a dollar-for-dollar basis.
“Aleph and Crestview’s investment is a strong vote of confidence in our vision to create a disruptive market leader with substantial scale, unique network assets and award-winning product capabilities to fulfill our clients’ growing demand for cloud networking services in Europe, the U.S. and across the globe,” said Rick Calder, GTT president and CEO.
Hugues Lepic, CEO of Aleph, added: “We are excited to become shareholders of GTT in this new phase of its growth and development. The strength of GTT and Interoute’s combined assets and capabilities creates a compelling opportunity to build a player with significant scale and international presence and drive further industry consolidation.”