Today, sources close to Comms Business have set the rumour mill in motion again by revealing GTT is apparently set to purchase the company which would create a global powerhouse in the communications market.
In 2016 Interoute reported revenues of €727 million with Ebitda of €147 million. Based on a range seven to ten times Ebitda the company could be worth €1.65 billion euros.
GTT Communications has been experiencing a surge of late and is now sitting at a price roughly 100% greater than its current record low price of $22.95. After stock jumped 5.5% in a day (25th Jan) GTT now has a market capitalisation of around the $2bn mark.
Institutional investors currently hold around $1.27 billion or 79.1% in GTT stock. Its largest, Bamco Inc, owns $100.7 million in stock which represents 4.98% of the company’s market cap. Analysts Beta Research has recommended GTT long term growth stock, the firm has yielded 59.50% earnings per share growth over the past 5 years and 41.70% revenue growth over that same time frame.