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Is GTT Eyeing Up Interoute?

Rumours first broke in October last year about Interoute, the pan-European fibre carrier and cloud-services operator, being primed for sale by their owners the Sandoz Family Foundation.

Today, sources close to Comms Business have set the rumour mill in motion again by revealing GTT is apparently set to purchase the company which would create a global powerhouse in the communications market.

In 2016 Interoute reported revenues of €727 million with Ebitda of €147 million. Based on a range seven to ten times Ebitda the company could be worth €1.65 billion euros.

GTT Communications has been experiencing a surge of late and is now sitting at a price roughly 100% greater than its current record low price of $22.95. After stock jumped 5.5% in a day (25th Jan) GTT now has a market capitalisation of around the $2bn mark.

GTT

Institutional investors currently hold around $1.27 billion or 79.1% in GTT stock. Its largest, Bamco Inc, owns $100.7 million in stock which represents 4.98% of the company’s market cap. Analysts Beta Research has recommended GTT long term growth stock, the firm has yielded 59.50% earnings per share growth over the past 5 years and 41.70% revenue growth over that same time frame.

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David Dungay

Editor - Comms Business Magazine