BIA Digital Partners, a private investment firm focusing on mid- to later-stage companies, has announced that in June, it made an investment of $7.5 million in Global Telecom & Technology (News - Alert) (GTT).

Thanks to this investment, GIT was able to acquire U.K.-based PacketExchange (News - Alert), a provider of customized Ethernet network solutions for businesses. “BIA was able to quickly grasp the advantages of the PacketExchange combination and provide flexible capital,” said Eric Swank, chief financial officer at GTT.

Lloyd Sams, managing principal of BIA Digital Partners, said that supporting the PacketExchange acquisition made perfect sense given the similarity of the businesses, the ability to bolster the network and add a new customer set, and the opportunity for synergies.

GTT is a global telecommunications carrier and a provider of network integrator serving the data communications needs of large enterprise, government and carrier clients. The company combines its network assets with the networks of over 800 suppliers worldwide, delivering scalable solutions supporting each client's unique requirements.

Company officials believe that the acquisition provided them with greater business scale and a combined customer base of over 1,200 worldwide clients, and also an expanded portfolio of data services.

The purchase price was funded primarily via a subordinated debt facility provided by BIA and senior facilities provided by Silicon Valley Bank. Company officials indicated that BIA has committed additional amounts for future acquisitions as well.

Calling acquisition of PacketExchange an “important step” in GTT's growth plan, Rick Calder (News - Alert), president and CEO at GIT, said that the deal advances their growth strategy to scale the business globally through both organic growth and strategic acquisitions.

“We believe it is critical to utilize financing partners like BIA Digital Partners that understand telecommunications and can grow with us,” Calder said.

Earlier in March, VTLWaveNet, a pan-European telecom service provider, partnered with GTT, which provides the company with connectivity between Ireland, France, Germany and Spain.