GTT Communications will snap up network infrastructure player Interoute in a €1.9bn (£1.6bn) deal that it claims will give it a further 72,000 km of fibre network in Europe.
The cloud networking firm will also grow its cloud connectivity platform by adding 15 datacentres, 17 virtual datacentres and 51 co-location facilities.
Interoute's network includes over 400 points of presence, in 24 metro areas and connecting 126 cities for 29 countries.
"The acquisition of Interoute represents a major milestone in delivering on our purpose of connecting people, across organisations and around the world," said Rick Calder, GTT president and CEO.
"We expect to complete this integration [of Interoute] within three to four quarters post-close and achieve a post-synergy multiple of seven to eight times adjusted EBITDA or better on a pro forma basis."
Gareth Williams, Interoute CEO, said the deal represents an exciting next chapter for the firm.
"The combined assets and strengths of our two companies create a powerful portfolio of high-capacity, low-latency connectivity, and innovative cloud and edge infrastructure services to support our customers in the global digital economy," said Williams.
The deal gives GTT over 1,000 strategic enterprise and carrier clients, primarily headquartered in Europe. GTT also cited the expanded capabilities the acquisition gives it in software-defined wide area networking (SD-WAN).
Interoute reported revenues of €718m and adjusted EBITDA of €165m for the 12 months ending 30 September 2017.
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