GTT Communications (GTT) – Get Report shares jumped Friday after the telecom carrier said it agreed to sell its fiber and data center infrastructure division to private equity firm I Squared Capital for up to $2.15 billion.
GTT is shifting its focus to cloud networking services.
Its shares at last check jumped to $5.39, up 7.6%. They have dropped 50% year to date amid stiff competition in the telecom industry.
The $2.15 billion sale price includes a cash payment of $2.02 billion at closing and total deferred payments of up to $130 million based on certain financial results.
“The divestment of the highly differentiated infrastructure division assets will ensure greater focus on network investment and development of high-speed infrastructure services under the more specialized ownership of this experienced investor,” GTT’s chief revenue officer and interim CEO, Ernie Ortega, said in a statement.
“The deal enables GTT to reinforce