This past Friday, leading global cloud networking provider GTT Communications (OTCMKTS:GTTN) was in the news after it made a major announcement. The company announced that the sale of its infrastructure unit to I Squared Capital had been completed.
It is a significant division for the company and is made up of data center assets, subsea fiber network and related infrastructure services to customers in North America and also all across Europe. While the move is a significant one for the company, it is also necessary to keep in mind that the GTT Communications stock performed quite poorly last week.
The stock had tanked by as much as 20% over the course of the previous week and it is going to be interesting to see if the announcement of this sale leads to any improvement or not.
Ernie Ortega, who is the Chief Executive Officer of GTT Communications, stated that it was a major move for the company since it is now trying to dial down its presence in infrastructure ownership and maintenance space in a big way. The sale of the infrastructure unit is a step in that direction as the company seeks to pivot to providing its services to enterprises.