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Telecommunications Global Crossing buys again: in Latin America
Telecommunications Global Crossing buys again: in Latin America | Global Crossing buys again: in Latin America |
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| by Stuart Corner | |
| Thursday, 26 October 2006 | |
  
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Global Crossing says the acquisition will accelerate its strategy to provide converged IP services to enterprises and carriers globally. "Impsat's extensive IP-based intercity network, 15 metropolitan networks and 15 advanced hosting centres will provide a greater breadth of services and coverage to Global Crossing's Latin American operations," the company said. "The combination of Impsat's data-centric customer set, extensive Latin American network and managed IP capabilities with Global Crossing's proven ability to deliver converged IP services on a global scale is a compelling win for the customers of both companies," said John Legere, Global Crossing's CEO. Global Crossing expects the acquisition to contribute annual revenue of more than $US270 million and to yield annual EBITDA of more than $US70 million after operational synergies are fully realised. Integration of the business is expected to be completed 12 to 18 months after closing of the transaction, at a one-time cost of approximately $US10 million. Legere added: 'The Impsat acquisition, along with our recently completed acquisition of Fibernet in the UK, demonstrates our strategic and focused participation in industry consolidation." Global Crossing closed, on October 11, its $US96.1 million acquisition of Fibernet Group, announced in August. Fibernet operates a UK-wide fibre optic network serving large enterprises, telcos and ISPs. Fibernet has more than 100 points of presence in the UK and an additional 12 in Frankfurt, Germany. That deal was Global Crossing's first major acquistion since emerging from chapter 11. Global Crossing, one of the highest profile victims of the 2000 'tech wreck', filed for Chapter 11 in 2003 with $US11 billion in debt. After a tough battle from potential buyers it was rescued by Singapore Technologies Telemedia which paid a mere $US250 million for 61.5 percent of the company; secured creditors got the rest. The company emerged from chapter 11 at the end of 2003 with its global network largely intact and with $US3.0 billion in annual revenues, and it has not looked back since.{moscomment} |
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