GTT sells data centre unit to I Squared Capital for $2.15bn
is selling its data centre and communications infrastructure business unit to energy and digital infrastructure investment management firm . The deal, which was announced on Friday, will see I Squared Capital pay a total consideration of $2.15bn, consisting of a $2.02bn up-front payment with an additional $130mn dependent on future financial results.
GTT’s infrastructure business consists of three transatlantic subsea fibre optic cables, including the GTT Express, which has the lowest latency of any cable connecting Europe and North America.
In addition to the three subsea cables, the acquisition will transfer a 103,000 route kilometer fiber network with over 400 points of presence, spanning 31 metro areas and interconnecting 103 cities in Europe and North America to I Squared Capital.
Finally, in addition to its portfolio of telecom and infrastructure solutions, GTT will also hand over control of 14 tier-3 data centres and more than 100 colocation facilities to I Squared Capital.
“The divestment of the highly differentiated infrastructure division assets will ensure greater focus on network investment and development of high-speed infrastructure services under the more specialized ownership of this experienced investor,” commented in a press release.
“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.”
GTT has revealed that it expects to use the newly acquired capital to , accumulated as a result of several major acquisitions made over the past 10 years, including the purchase of a number of data centre facilities and digital infrastructure from Interoute, Hibernia, and KPN International.
I Squared Capital has said that it expects the infrastructure to be a valuable investment at a time when the ongoing COVID-19 pandemic is driving digital transformation and internet usage faster than ever.
said in a statement: “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 upon I Squared Capital’s overarching global digital infrastructure strategy and experience with complex carve-outs to expand the reach of our platforms across Asia, Europe and North America.”
The acquisition is expected to close in the first half of 2021.
Target joins Open Compute Project to become platinum member
U.S retail corporation Target will join the Open Compute Project (OCP) as a Platinum member following record growth for the company in 2020.
The announcement was made during an ICCON conference hosted by the U.S retailer last week, and the partnership aims to expand the development of edge computing use cases within the company.
The retailer is the first major U.S retailer to become a platinum member, paving the way for others to join the partnership in the future.
"We are very excited to join the OCP and partner with the community on new use cases for networking and edge computing," said Mike McNamara, Chief Information Officer of Target.
He added: "This type of open and increased collaboration will help us all create better technology that’s purpose-built for enterprise needs."
Target also has a distributed footprint, which McNamara says can influence new OCP use cases for networking and edge computing.
This news follows a rise in growth for the organisation in 2020, with customers shopping with the retailer and using their "same-day services."
The Open Compute Project claims that it allows Target to partner with industry leaders in cloud technology, as the majority of the retailer's success "is supported by underlying technology," says Target.
Bill Carter, CTO for the Open Compute Project Foundation, believes that joining the business is not a first for Target.
He said: “Working together and open sourcing is not new for Target. Many of the retailer’s engineers have already been involved in various OCP Projects and we’ve seen tremendous value from their participation.
"Today’s announcement further demonstrates Target’s long-term commitment to advance and contribute to the open source community for the benefit of all,” concluded Carter.