GTT to acquire KPN
July 8, 2019
Cloud networking provider GTT Communications has signed a definitive purchase agreement to acquire KPN International, a division of KPN headquartered in Netherlands, for approximately €50 million in cash, on a cash and debt-free basis. KPN International operates a global IP network serving enterprise and carrier clients.
“The acquisition of KPN International deepens our market presence in the European region,” said Rick Calder, GTT president and CEO. “The world-class resources contributed from this acquisition, including a highly experienced team, international network assets and a deep roster of multinational clients, will help us deliver on our purpose of connecting people across organisations around the world and to every application in the cloud.”
In a statement, KPN said the move was part of its strategy to simplify operations. It plans to retain the proceeds to “increase operational and financial flexibility”.
The acquisition is expected to close in the third quarter 2019 subject to obtaining the required regulatory approvals.