Analysys Mason advises GTT on $2.1 billion sale of infrastructure unit

09 November 2020 Consultancy.eu

Global technology communications group GTT has sold its infrastructure division to investor I Squared Capital for $2.1 billion. Consultants from Analysys Mason advised GTT on the successful sale and carve out of its infrastructure assets across Europe and North America. 

GTT’s portfolio of fiber and data center assets spans three transatlantic submarine cables (including GTT Express, the fastest transatlantic cable currently available), 14 data centers, and several terrestrial pan-European cables. The division also owns data centers, more than 50 colocation centers and over 250 amplifier sites across Europe and North America. 

Together, the infrastructure provides a portfolio of cloud networking, traditional and software-defined wide area networking, global SIP trunking, security and internet services to multinational clients, helping them interconnect over 100 major cities across Europe and North America.

GTT network

GTT’s decision to sell its builds on the company’s strategy to restructure its business model while chipping away at its debt, said interim CEO. Ernie Ortega. “The deal enables GTT to reinforce its capex light business model as well as its cloud networking focus and will benefit both enterprise and infrastructure clients alike.” 

Meanwhile, the change of ownership will enable the infrastructure division to enhance its business “under the more specialised ownership of this experienced investor,” said Ortega.

This specialised investor is I Squared Capital, which edged out The Macquarie Group, 3i Group and AustralianSuper to scoop the deal. Gautam Bhandari, managing partner at I Squared Capital on the rationale: “Now more than ever, digital infrastructure is an essential asset class as societies across the globe rely heavily on high-speed digital bandwidth. This acquisition builds on overarching global digital infrastructure strategy and expands the reach of our platforms across Asia, Europe and North America.”

I Squared Capital is an independent global infrastructure investment management firm focused on investments in the energy, utilities, infrastructure and transport sectors.

Dealmakers

The transaction required a complex carve-out from GTT, which was advised on by Analysys Mason, an international consulting firm focused on the technology, media and telecom industries. The firm performed the commercial and technical due diligence on the infrastructure assets, provided assistance in defining strategic growth opportunities and helped with building the business plan for the future InfraCo and the roadmap for its setup. 

Seller GTT was also advised by financial consultants from Credit Suisse and Goldman Sachs, and legal advisors from Goodwin Proctor.

Meanwhile, buyer I Squared Capital received commercial and technical advice from Solon, with Morgan Stanley ( financial advisor), Rothschild (debt advisor), KPMG (tax and accounting advisor), Linklaters (legal advisor) and Latham & Watkins (borrower’s counsel) also involved as dealmakers.