CDN Network to be Acquired by GTT
CDN Network competition is incredibly fierce, with a huge number of companies operating in the market and with many offering niche web performance and acceleration technologies in a bid to entice new customers with innovative services. As such, it is both very difficult for companies to enter the CDN network market and very lucrative for those companies looking to acquire incumbent CDN providers.
Given the revenue potential of CDN network providers, it’s not surprising that there have been many high profile acquisitions this year. Now, the latest company to acquire a CDN network is GTT, a major cloud provider. They are buying Ireland-based Hibernia Networks for US$590 million. This deal with see GTT incorporate Hibernia’s CDN network that spans 25 countries, complementing their Tier 1 global network.
CDN Network Acquisition Benefits
Speaking of the acquisition, Bjarni Thorvardarson, CEO of Hibernia Networks, said “Hibernia Networks customers and partners around the world will benefit from the expansive reach of GTT’s tier 1 IP network, the broader portfolio of products and services, improved scale, and the company’s expertise in delivering cloud networking solutions and managed services. Hibernia Networks and GTT share similar values emphasizing speed and agility with a resolute focus on serving wholesale, enterprise and government customers with innovative and differentiated solutions.”
Rick Calder, GTT president and CEO, continued, “this acquisition accelerates GTT’s growth strategy by expanding our portfolio of cloud networking services, significantly increasing the scope and power of our global network, and growing our multinational client base. Hibernia Networks has a demonstrated track record of growth, and brings unique, strategic network assets featuring high-bandwidth, low latency connectivity. We are very excited to welcome Hibernia Networks’ clients and talented team members to GTT.”