McLean, Virginia-based telecommunications, internet and cloud services provider GTT Communications has signed an agreement to sell its infrastructure business to I Squared Capital, a Miami-based infrastructure investment company, for $2.15 billion.
GTT Communications stock spiked as much as 20% in New York Stock Exchange trading on the announcement Friday.
GTT signaled plans to sell the infrastructure business last fall when it hired Credit Suisse Group and Goldman Sachs as financial advisors on a possible sale.
The division that I Squared Capital is acquiring includes GTT’s Pan-European and North American sub-sea and trans-Atlantic fiber network and data center infrastructure.
GTT retains its cloud networking services over its global Tier 1 IP network, which includes traditional and software-based networking, security and internet services.
It is the first sale for GTT after its own string of recent acquisitions, including fiber-optic networks, subset cables and data centers.
The I Squared acquisition is expected to close in the first half of 2021.
GTT is one of the five largest internet backbone providers in the world. The company, founded in 1998, has $1.7 billion in annual revenue and 3,100 employees, according to data from the Washington Business Journal, which named it one of the region’s 50 fastest-growing companies in 2017.