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nLayer (GTT) buys Tinet (Inteliquent)
I realize this will only matter to a few people, but it is indeed very interesting.
Inteliquent Sells Global Data Business to GTT for $54.5 Million
Chicago, IL and McLean, VA, April 30, 2013 – Neutral Tandem, Inc. d/b/a Inteliquent (NASDAQ: IQNT) announced today that it has sold its global data services business to GTT (OTCQB: GTLT) for $54.5 million. The transaction consideration includes $52.5 million of cash and $2.0 million of commercial services that GTT will provide to Inteliquent over three years. The transaction signed and closed on April 30, 2013.
The global data business sold by Inteliquent generated revenues of $69.5 million in 2012 and serves over 1,100 customers. The data business has over 120 points of presence in 24 countries and provides IP Transit and Ethernet services. The data business is one of the largest global Ethernet interconnection networks, a top-five global IP Transit service provider and a leading IPv6 network. The data business is largely comprised of the assets acquired by Inteliquent through its purchase of Tinet S.p.A. in 2010.
Ed Evans, Chief Executive Officer of Inteliquent, stated, "We are pleased to conclude the sale of our data business. We look forward to working to grow our core voice services business, to which we will dedicate all of our efforts going forward. This transaction also affords us with significant balance sheet flexibility to consider other value-enhancing alternatives for our shareholders."
Richard D. Calder Jr., President and Chief Executive Officer of GTT, stated, "Acquiring the Inteliquent data business accelerates our established growth curve towards becoming a more asset-based network solution provider, capable of delivering complex, integrated network solutions globally."
Inteliquent was advised by BMO Capital Markets and Simpson Thacher & Bartlett LLP. GTT was advised by Bank Street Group and Kelley Drye & Warren LLP.
Comments
Another "merger". Not many players left in the market.
And most US or pseudo US (Cogent; Bahamas) based... i would worry about that... and hope that NTT and Tata dont get sold also.
I take it this interests you because those are your two BGP peers.
It is getting to be a bit startling . . .
nLayer is huge now. Has to be the biggest tier 2 by far.
Guess people who have been multihoming nlayer + tinet are going to have to look at alternatives.. either down (back to he/cogent as backup) or up (level3 etc)
nLayer performance has been rock solid really.
nLayer + atrato might be a good alternative if both are available.
Atrato's routes are largely TiNET so that is basically redundant unless you are looking for strong Nordic routes in which case Atrato has some strength over TiNET in terms of european access where as TiNET has much stronger southern europe/Italy from it's heritage as Tiscali.
We have all three Tinet, nLayer, and Atrato in our Atlanta mix. Atrato does nicely complement TiNET currently as Atrato is a blend of Tinet/NTT/Telia + Peering in Atlanta and we have both nlayer and Atato POPs in our 34 Peachtree location.
Atrato takes a surprisingly large portion of our inbound traffic, their network performs quite solid, their NOC also has great response times.
Ntt is very unlikely, Japanese laws prevent >50% of it being sold to non-government entities. As to Tata, well, no idea.
and to follow this up, I would fully expect to see further consolidation in the business in the coming 1-2 years and a leveling out / increase in pricing overall.
Keep in mind current day GTT is now
wbs-connect, nlayer, mzima, packet-excahnge, tinet, etc
level3/glbx combined
highwinds/eweka and a bunch of small resellers all rolled into one.
Tata and TeliaSonera (via a reseller) may be the only ones worth while and within the price range of most of the providers on here who have their own connections.
Abovenet/Zayo for transit is a trainwreck to deal with and their pricing depends on the time of day, weather, solar flares, and light bouncing off pluto. Their network is hit or miss depending on your location, many are quite awful. For dark fiber/transport services they are great.
So will the networks merge or stay separated?
What a great ratio!
Tiscali / Tinet / Inteliquent got sold and rebranded how many times already? Seems they can't find their market niche.
I would have thought they had more customers.
GTT will take care of them by folding them into nLayer. Final stop on the road I would say.
Until Level3 or someone comes along and buys GTT.
Level3 has low cash reserves now, so currently unlikely.
nLayer (4436) will roll into the Tinet (3257) ASN.
So does that mean that we will lose that amazingly low latency from nlayer by deluding it? XD
Yeah my bad, stupid chrome spelling suggestions...
Yeah, I didn't think you could get rid of latency just by fooling it.
@DStrout - yes it would be a dilution to believe that..
So you are single-homed soon again, @Nick_A?
That's going to be one hell of a network.
They do take a bunch of TiNET, but I don't think it's a much as you say it is. And they also run one of the best peered networks in the world, so that's a plus.
So I've heard. Not sure why more don't use them.
I had a friend buy IQNT stock when it was low, looking nice now
With this acquisition they just became a tier 1 (as tinet is a tier 1)
no.
http://en.wikipedia.org/wiki/Tier_1_network#List_of_tier_1_networks or look at renesys
Tata is a Huge conglomerate in India. (something like GE..) They have everything from mining to steel to automobiles to software services and tele-communications. It is highly unlikely that Tata communications will by purchased by someone else.
So, maybe someone will buy Level3