GTT Communications Expands With $40M Access Point Acquisition

Cloud networking provider GTT Communications on Monday said it has acquired communication services provider Access Point in a deal valued at $40 million.

Mclean, Va.-based GTT owns and operates a global Tier 1 internet network over which it provides a suite of cloud networking services to clients. The company has made several acquisitions in the channel as a way to expand its indirect channel capabilities.

Cary, N.C.-based Access Point provides voice, internet, private network, IT telephony, managed services, SD-WAN, and collaboration services through independent agents.

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GTT said the acquisition of Access Point will bring it a growing list of strategic U.S.-based enterprise clients in such areas as retail, manufacturing, and energy, with new opportunities to upsell other services to those customers.

The firm also gets new complementary managed services in broadband, internet, and voice, along with new indirect channel partner relationships.

GTT has a long history of acquisitions. The company earlier this year unveiled the $2.3-billion acquisition of Interoute, which gave it 15 new data centers, 17 virtual data centers, and 51 new co-location facilities.

GTT in 2016 acquired Dublin, Ireland-based Hibernia Networks as a way to increase trans-Atlantic services.

The $40-million price tag for Access Point included $35 million in cash and $5 million worth of GTT shares.

GTT executives were not available to comment further on the acquisition by publication time.

However, Rick Calder, GTT president and CEO, said in a prepared statement that Access Point's strong customer relationships in a few important vertical markets made the company a good acquisition target.

"We expect a rapid integration as we work with our new clients to deliver on our purpose of connecting people across organizations, around the world and to every application in the cloud, Calder said in the statement.

Richard Brown, Access Point CEO, said in a prepared statement, "With GTT, Access Point customers now have access to one of the industry’s largest Tier 1 global IP networks and a broad portfolio of cloud networking services backed by a commitment to providing outstanding service that mirrors our own.