Industries Technology

GTT Communications to acquire One Source Networks for $175 million

  •  | 
Print this page

McLean-based cloud networking provider GTT Communications Inc. plans to acquire  One Source Networks for $175 million.

One Source, based in Austin, Texas, is a managed communications serving Fortune 1000 companies.

“This transaction accelerates our growth strategy by adding deep relationships with a diverse blue-chip client base and broadening our portfolio of cloud networking services,” Rick Calder, GTT’s president and CEO, said in a statement.

When the deal is closed, GTT expects to achieve its previously announced financial objectives of $400 million in revenue and $100 million in adjusted EBITDA, Calder said.

Under the terms of a definitive agreement, GTT’s offer will include $165 million in cash and about $10 million in common stock, plus any adjustments for net working capital. 

For the 12 months ending June 30, One Source reported revenue of $74.6 million, gross profit of $31 million, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $13.9 million, and capital expenditures of $2.5 million. 

The deal is expected to close in late October, subject to regulatory approvals and other customary closing conditions.

GTT has engaged KeyBank and SunTrust Robinson Humphrey to provide financing for the deal.  The financing is expected to include a new $400 million loan and $50 million revolving credit facility.

showhide shortcuts