GTT Snaps Up PacketExchange for $20M
International carrier and network integrator Global Telecom & Technology Inc. announced on Monday an agreement to buy Ethernet services specialist PacketExchange Ltd. for up to US$20 million in cash and assumed debt. (See GTT to Buy PacketExchange.)
GTT, which is looking to grow its business internationally, said the acquisition of PacketExchange will add network scale and customers, as well as new data services, such as global Ethernet, peering, cloud networking and network infrastructure-as-a-service. After the transaction, which is expected to close by the end of the second quarter 2011, GTT said its customer base will total 1,200 worldwide.
PacketExchange has about 500 customers, operates network assets in Europe, Asia/Pacific and the U.S., and after the acquisition is expected to generate annualized revenue of $20 million.
GTT, meanwhile, recorded full-year 2010 revenue of $81 million and net income of $1.4 million.
Why this matters
PacketExchange caught GTT's eye because of its network reach, customer base and services such as the recently launched cloud offering, network infrastructure-as-a-service, according to the companies. And GTT was already on the prowl for acquisitions. But could this deal signal more consolidation to come in the Ethernet services sector? (See PacketExchange Swallows Mzima.)
For the latest Ethernet services news, check out these stories:
- PacketExchange Gets Cloudy
- Ethernet Europe 2011: Where's the Innovation?
- Ethernet Europe: Happy Snaps, Part I
- Cloud Rolls In to Ethernet Europe
- Carrier Ethernet Access Enters 2011 on a High
— Michelle Donegan, European Editor, Light Reading Mobile