Neutral Tandem Buys Tinet for $95 Million

connectivity

In a deal targeting the growth of Ethernet services, interconnection service specialist Neutral Tandem (TNDM) has agreed to acquire Tinet SpA, an international carrier providing wholesale IP Transit and Ethernet services, for 74.5 million euros (approximately $94.9 million).

The deal will immediately expand Neutral Tandem’s IP-based network internationally, enabling global end-to-end delivery of wholesale voice, IP and Ethernet solutions. Neutral Tandem has specialized in providing carrier-neutral connections in the telecom market, working with wireless carriers, cable companies, CLECs and broadband service providers.

Deal 'Redefines' Neutral Tandem
"This acquisition redefines Neutral Tandem from a strictly voice interconnection company into a global IP-based network services company focused on delivering global connectivity for a variety of media, including voice, data and video," said Rian Wren, President and CEO of Neutral Tandem.

"Furthermore, the integration of Tinet’s global IP backbone will help accelerate and expand Neutral Tandem’s and Tinet’s Ethernet services," Wren said. "This combination will take our Ethernet eXchange service global and will position us for delivering cost-effective wholesale Ethernet interconnectivity solutions end-to-end."

Neutral Tandem has teamed with Telx on an Ethernet exchange that will allow enterprise and cloud/SaaS providersto connect their Ethernet networks without setting up individual interconnection agreements or building out local fiber networks. 

Exchanges as Convergence Enabler
Ethernet exchanges are seen as an important enabler of the convergence between global communications networks as the growth data traffic begins to outpace voice traffic. Equinix and CENX have also launched Ethernet exchanges to pursue this market.

“Tinet is excited to continue to drive the growth of the global wholesale IP Transit and Ethernet markets under the Neutral Tandem umbrella,” said Paolo Susnik, CEO of Tinet. “We believe that the combination with Neutral Tandem will provide significant benefits to the global wholesale communications marketplace. The integration of our networks will provide customers greater access points to buy and sell Ethernet services and will add further value to our IP Transit proposition.”

Cabling image by Sugree via Flickr.