Resultados 1 a 4 de 4
  1. #1
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    Exclamation [EN] GTT compra Hibernia Networks

    Rob Powell
    November 9th, 2016

    The autumn M&A season in telecom and internet infrastructure is still popping. This morning we have another key announcement to look at: GTT has agreed to acquire Hibernia Networks for $590M.

    Both companies operate global networks and there is plenty of overlap for synergies. Hibernia's penetration into the financial and video transport verticals looks like a very good fit for GTT's approach to the market, as does the content delivery network. Of course, GTT made several network acquisitions (Inteliquent's IP/Ethernet network, nLayer, PacketExchange) prior to a series of deals for managed services assets (UNSi, Megapath's managed services, One Source Networks, Telnes), but what really makes this one different is not just the scale but that it includes assets at the infrastructure level.

    Specifically, Hibernia Networks owns and operates transatlantic cables including the recently opened ultra-low latency Express cable. But Hibernia has also built much of its US and European terrestrial networks off of dark fiber IRUs, whereas GTT has until now built its network at the wavelength level and above. According to the company, now that they have the scale it makes sense to add more dark fiber into the mix. That appetite is definitely something we should probably watch when GTT is ready for the next acquisition.

    But that's speculation for another time, let's look at some numbers. According to the release, Hibernia did $45.5M in revenue and $16.1M in EBITDA in the third quarter of 2016. They are on target to finish out the year with about $185M in revenue and $65M in EBITDA. That puts the multiple just above 9xEBITDA pre-synergy, and GTT is expecing to lower that to 7xEBITDA post-synergy. It's the biggest integration project they've taken on yet, and they expect it to take 2-3 quarters to complete. There's a lot of network integration work there though, it wouldn't surprise me if it took a bit longer than that, honestly.

    We have seen a lot of M&A activity lately, but my feeling is that much of it has been more defense than offense. This one is different. GTT's purchase of Hibernia Networks is an aggressive move that they didn't have to make. While scale and cost synergies are obviously key to making the numbers work, this is two growing companies for whom the revenue synergies look quite interesting.

    GTT will be paying $515M in cash with the remainder of the purchase price being covered by approximately 3.3M shares of its common stock.
    Última edição por 5ms; 09-11-2016 às 13:01.

  2. #2
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    PR: GTT to Acquire Hibernia Networks

    Adds highly strategic global fiber assets, including ultra-low latency routes
    Expands service portfolio and client base
    Significantly increases scale

    McLean, VA, November 9, 2016 — GTT Communications, Inc. (NYSE: GTT), the leading global cloud networking provider to multinational clients, announced today a definitive agreement to acquire Hibernia Networks, a leading provider of global, high-speed network connectivity solutions and owner of terrestrial and subsea fiber assets including Hibernia Express, the lowest latency transatlantic cable system. The $590 million transaction 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.

    This strategic combination:

    • Adds breadth and depth to GTT’s global Tier 1 IP network with owned and leased dark fiber assets including five owned subsea cables and eight cable landing stations
    • Expands GTT’s cloud networking portfolio, composed of wide area networking, internet, managed services and voice services, with the addition of optical and low latency transport, video and CDN services
    • Adds a world-class video transport platform servicing content rights holders, broadcasters, cable companies and OTT providers
    • Grows GTT’s client base, adding marquee clients with depth in the financial services, media and entertainment, web-centric and service provider segments, which will remain strategic verticals of focus for GTT
    • Enhances GTT’s financial profile by adding a substantial, highly complementary recurring revenue business with strong cash flow characteristics

    “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’s acquisition of Hibernia Networks provides great benefit to the entirety of our customer base as well as our two organizations,” said Bjarni Thorvardarson, Hibernia Networks’ chief executive officer. “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.”

    The parties expect to close the transaction by the end of first quarter 2017, subject to certain regulatory approvals and other customary closing conditions.

    The Bank Street Group LLC served as exclusive financial advisor to Hibernia in connection with this transaction.

    Transaction Financing

    Under the terms of the agreement, the purchase price is $590 million, subject to customary adjustments for working capital and other items, composed of $515 million in cash, plus approximately 3.3 million shares of GTT common stock, to be issued to the sellers at closing, valued at $75 million. The cash portion of the purchase price will be funded with proceeds from additional debt issuance, consisting of secured term loans as well as senior unsecured notes. The debt syndication process will be led by KeyBank National Association and Credit Suisse, who provided committed financing for the transaction.

    At closing, the ratio of total net debt to Adjusted EBITDA is expected to be approximately 4.5:1, using annualized pro forma combined third quarter 2016 Adjusted EBITDA plus expected cost synergies. Within one year after closing, the ratio of total net debt to Adjusted EBITDA is expected to be at or below 4.0:1, reflecting continued Adjusted EBITDA growth and cash generation.

    Hibernia Financial Information

    For the three months ending September 30, 2016, Hibernia reported, on an unaudited basis, revenue of $45.5 million, Adjusted EBITDA of $16.1 million and capital expenditures of $1.9 million. For the nine months ending September 30, 2016, Hibernia reported, on an unaudited basis, revenue of $138.6 million, Adjusted EBITDA of $49.1 million and capital expenditures of $12.7 million. In 2015, Hibernia reported revenue of $148.9 million, Adjusted EBITDA of $34.2 million and capital expenditures of $161.5 million. Revenue and Adjusted EBITDA growth from 2015 to 2016 is primarily driven by completion of the Hibernia Express low latency transatlantic cable system in September 2015, including the impact of certain prepayments for long-term indefeasible rights of use (“IRUs”) from anchor tenants. The results listed above are as reported by Hibernia Networks, without expected future cost synergies, and without any pro forma adjustments.
    Detailed Hibernia results and pro forma information will be made available in a Form 8-K within the next several weeks.

    Third Quarter 2016 Results

    In a separate press release issued today, GTT announced its third quarter 2016 results. These results, as well as this transaction, will be discussed later today on GTT’s previously announced conference call at 8:30 a.m. EST.

    Conference Call Information

    GTT will hold a conference call on Wednesday, November 9, 2016, at 8:30 a.m. EST. To participate in the live conference call, interested parties may dial +1.844.875.6916 or +1.412.317.6714, entering passcode 10093979 and ask for the GTT Communications call, or via webcast at GTT’s website.

    A telephonic replay of the conference call will be available for one week and may be accessed by calling +1.877.344.7529 or +1.412.317.0088 and using the passcode 10093979. The webcast will be archived in the investor relations section of GTT’s website.

    About GTT

    GTT provides multinationals with a better way to reach the cloud through its suite of cloud networking services, including wide-area networking, Internet, managed services and voice services. The company’s Tier 1 IP network, ranked in the top five worldwide, connects clients to any location in the world and any application in the cloud. GTT delivers an outstanding client experience by living its core values of simplicity, speed and agility. For more information on how GTT is redefining global communications, please visit

    About Hibernia Networks

    Hibernia Networks owns and operates a global network serving more than 100 markets and spanning 25 countries. Hibernia Networks serves customers with unparalleled support, flexibility and service in a variety of industry segments including financial markets, web-centric, media and entertainment, and telecom service providers. Providing enterprise-class and wholesale global connectivity solutions, Hibernia Networks offers secure and diverse optical transport, Ethernet and carrier-grade IP transit services. Hibernia Networks also offers dedicated cloud connectivity, low latency services, DTM and HiberniaCDN for seamless anytime, anywhere content delivery. Hibernia Express, Hibernia Networks’ transatlantic cable, provides the lowest latency connections available between major commercial and financial centers in North America, Europe and beyond. The state-of-the-art cable system garnered two Global Carriers Awards in 2015 — Subsea Project of the Year and Best Subsea Innovation, as well as the Global Telecom Business Innovation Award for 2016.

  3. #3
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010

    Hibernia Networks owns and operates a global fiber network connecting North America, Europe and Asia, reaching more than 100 markets. The network, optimized for best-in-class latency performance, is comprised of more than 220 PoPs in 25 countries, with unique routes for added diversity and resiliency. The network infrastructure enables services that include Optical Transport, Ethernet and IP, Video Services, and CDN.

  4. #4
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
    Para quem não está ligando o nome à pessoa, a Hibernia é a mais importante fornecedora da rede privada da OvH.

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