GTT Communications stock spikes higher after $2.15 billion deal to sell its infrastructure division

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Shares of GTT Communications Inc. shot up 23.2% in morning trading Friday, after the provider of cloud networking services said it reached a deal to sell its infrastructure businesses for $2.15 billion to I Squared Capital. GTT said its infrastructure division includes its businesses providing pan-European, North American, sub-sea and trans-Atlantic fiber network and data center infrastructure services. As part of the deal, GTT will receive an upfront cash payment of $2.02 billion closing, which is expected to occur during the first half of 2021, and total deferred payments of up to $130 million based on certain financial results. GTT’s stock has tumbled 45.0% year to date, while the S&P 500 has gained 8.2%.
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