GTT has announced major shifts on it’s earnings call today. The company plans to sell of and liquidate their massive infrastructure services. This was clearly a difficult decision, but necessary to remove those assets as they continue focusing on Software Defined services. As stated on the call, the company hopes this selloff will give them financial freedom needed to reduce their debt obligations driven by a half decade of massive SD-WAN acquisitions. The burden is already high (totaling more than $3 Billion) and will grow yearly through 2025. The biggest questions will be: 1. Can GTT find a buyer (They’re leveraging Credit Suisse and Goldman Sachs). and 2. Can GTT get the integrations complete.
The integrations continue to be a big hurdle for telecom. Companies that successfully integrate are going to thrive in this new era, but don’t be surprised if there is additional liquidation from failed integrations in the future.