Global Telecom (GTLT) to Fatten Customer Base and Portfolio with $20M PacketExchange Acquisition

QualityStocks would like to highlight Global Telecom & Technology (OTCBB: GTLT), a global telecommunications carrier and leading network integrator serving the data communications needs of large enterprise, government and carrier clients in over 80 countries

In the company’s news yesterday,

Global Telecom announced it will acquire privately held, UK-based PacketExchange, a provider of customized Ethernet network solutions, for $20 million in cash and assumed debt.

The deal reflects GTT’s growth strategy for global expansion through organic growth and strategic acquisitions, and will result in a broader customer base of more than 1,200 clients worldwide, as well as an expanded portfolio of data services and offerings.

“GTT has experience seamlessly integrating complex telecom acquisitions, and the process with PacketExchange, already underway, will be no different. This is another example of how we can simultaneously build a broader, deeper and more sophisticated customer base while greatly enhancing our positive cash flow through our M&A activities,” Eric Swank, CFO of GTT stated in the press release.

GTT will pay up to $20 million in cash and assumed debt to acquire PacketExchange and its subsidiaries. PacketExchange operates network assets throughout the U.S., Europe and Asia, with roughly 500 customers, and generating more than $20 million in annualized revenue post-acquisition. GTT expects the transaction to be immediately accretive.

Rick Calder, president and CEO of GTT, said the acquisition will quickly complement and benefit GTT and its business goals.

“The addition of PacketExchange strengthens our robust portfolio of telecom services, and these assets advance GTT’s strategy to rapidly scale our global telecom business. With this transaction, we will further leverage our unique intellectual capital and enhance our established reputation for providing reliable telecom services to our global customer base,” Calder stated.

The deal is expected to be completed by the second quarter of 2011.

About QualityStocks

QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.

To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net

Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net

Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.