Cloud network provider GTT to acquire KPN

July 9, 2019 • Mobile and Telecoms

GTT acquires KPN for an estimated $56 million.

GTT acquires KPN for an estimated $56 million.

Infrastructure company and cloud network provider GTT Communications recently announced its acquisition of Dutch IT provider KPN International. KPN International is a division of KPN N.V. and is headquartered in the Netherlands. The deal is worth an estimated $56 million in cash and is on a cash and debt-free basis. The transaction will include fibre assets and points-of-presence in 21 countries. KPN said that it will sign an agreement with GTT Communications to allow the company to continue the supply of international services to its business customers located in the Netherlands.

GTT Communications operates a Tier 1 network and provides IP transit and MPLS transport services to government, enterprise and carrier customers in more than 100 countries. The company is currently headquartered in McLean, Virginia, U.S.A. GTT, early last year, acquired British network and infrastructure company Interoute for an estimated $2.3 billion in cash. KPN, in a statement, said its acquisition by GTT was part of a strategy to simplify the company’s operations. KPN aims to keep the proceeds in order to “increase operational and financial flexibility.”

“The acquisition of KPN International deepens our market presence in the European region. The world-class resources contributed from this acquisition, including a highly experienced team, international network assets and a deep roster of multinational clients,” said Rick Calder, GTT president and CEO. KPN has been undergoing a restructuring process in order to cut operational costs by $393 million. The restructuring process was revealed in 2018 by then-CEO Maximo Ibarra. Ibarra stepped down from the position of CEO in September 2018 and a successor has not yet been named.

In May 2019 the company sold off its data centre division, NLDC, to a fund managed by a subsidiary of Deutsche Bank. The acquisition of KPN by GTT is expected to close by the third quarter of 2019, pending the obtaining of the required regulatory approvals.

Edited by Kojo Essah

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