October 29, 2006 – (HOSTSEARCH.COM) – Telecommunications solutions provider Global Crossing is to acquire Latin American IP, web hosting and value-added data solutions provider, Impsat, it was announced this week. The deal was quoted as costing $336 million, consisting of $95 million in cash and absorption of $241 million of debt. The transaction is expected to take place in the first quarter of 2007.
Global Crossing acquisition of Impsat will accelerate its strategy of global provision of converged IP services to enterprises and carriers. Impsat will add more than 4,500 customers in seven Latin American countries to Global Crossing's books. The adoption of 15 metropolitan networks and 15 advanced hosting centers will add “greater breadth of services and coverage to Global Crossing's Latin American operations” and enhance its competitive position as a global service provider to multinational enterprises and carrier customers.
"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," explained John Legere, Global Crossing's CEO. "The Impsat acquisition, along with our recently completed acquisition of Fibernet in the UK, demonstrates our strategic and focused participation in industry consolidation. We will aggressively pursue those opportunities that would enhance our core business, expand our service capabilities and improve our financials."
Global Crossing and Impsat have been working together since 2000, when Global Crossing selected Impsat as one of its providers of Point of Presence (PoP) facilities for its Latin American network. This should lead to a “seamless transition” on completion of the acquisition.
"This transaction demonstrates the value created by Impsat within the telecommunications industry in Latin America and represents an attractive offer to our shareholders. Our service-oriented employees and portfolio of IP- based products and services mesh perfectly with Global Crossing's strategy and culture, which emphasize technology, security, customer support and control," added Ricardo Verdaguer, CEO of Impsat. "I believe combining our companies will enhance the solutions we provide customers, create economies of scale and further serve the economic development objectives of the Latin American region."
