GTT Communications agree to acquire Hibernia Networks, which owns the new Hibernia Express transatlantic cable systems and other terrestrial and undersea fiber assets, for $590 million. The deal consists of $515 million in cash and approximately 3.3 million shares of GTT common stock, to be issued to the sellers at closing, valued at $75 million.
GTT operates a global Tier 1 IP network with owned and leased dark fiber assets including five owned subsea cables and eight cable landing stations. The company delivers global cloud services to multinational customers. GTT is based in McLean, Virginia.
“This acquisition accelerates GTT’s growth strategy by expanding our portfolio of cloud networking services, significantly increasing the scope and power of our global network, and growing our multinational client base,” said Rick Calder, GTT president and CEO. “Hibernia Networks has a demonstrated track record of growth, and brings unique, strategic network assets featuring high-bandwidth, low latency connectivity. We are very excited to welcome Hibernia Networks’ clients and talented team members to GTT. Following our successful, proven acquisition template, we expect to complete integration within two to three quarters post-close, and to achieve a post-synergy multiple of seven times Adjusted EBITDA or better on a pro forma basis.”
“GTT gains world class global fiber assets, including ultra-low latency routes between key financial markets, as well as optical, low latency and content services, and exceptional employees with a proven track record of network and commercial leadership, and exemplary customer service. Hibernia Networks clients around the world will benefit from the expansive reach of GTT’s Tier 1 IP network, the broader portfolio of products and services, improved scale, and the company’s expertise in delivering cloud networking solutions and managed services to multinational clients,” stated Bjarni Thorvardarson, Hibernia Networks’ chief executive officer.
Hibernia Networks said its new undersea cable has undergone rigorous testing over the past two weeks. Testing parameters included power stability, spectral efficiency and latency. The results confirmed the latency on Hibernia Express from LD4 in Slough, England to NY4 in Secaucus, New Jersey to be under 58.95ms.
- Hibernia Express utilizes a 6-fiber-pair submarine cable, with a portion of the fibers optimized for lowest latency and a portion optimized for 100X100 Gpbs design capacity. The total cross-sectional design capacity of the cable will be over 53 Tbps. Hibernia Express will initially launch with 100 Gbps transmission capacity using TE SubCom’s C100 SLTE platform. Hibernia Express follows the most direct route between the UK and North America, promising to reduce latency by at least 5 milliseconds over existing cables.
In this video, Al DiGabiele, SVP Product Management & Marketing at Hibernia Networks, talks about rising demand on the new cable system and a new protected-wavelength service with automated failure switching.
See video: https://youtu.be/M30rf6GR4Fw