Privately held PacketExchange is being acquired by global network integrator Global Telecom & Technology (OTCBB:GTLT, news) (GTT). PacketExchange operates a tier-2 international IP and Ethernet network, and itself acquired Mzima just last year. This does seem to mark a change in strategy for GTT, which has traditionally been carrier neutral but will now own its own backbone, at least at layer 2. PacketExchange also took a swing at the cloud earlier this year, unveiling a network infrastructure as a service offering.
The pricetag here is $20M in cash plus the assumption of debt, and the price is $20M in annualized revenue from approximately 500 customers. That should bring GTT's revenue up above the $100M threshold on an annual basis. GTT expects the deal to close this quarter, and following a swift integration will be immediately accretive. I have not historically followed the company too closely, but following this deal I will have to keep a closer eye on them.
I wonder if GTT has additional M&A in mind, hmmm...
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