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CHICAGO and MCLEAN, Va., April 30, 2013 (GLOBE NEWSWIRE) -- 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.