BOSTON (02/22/2000) - Global Crossing Ltd. announced today that it will acquire IXnet Inc., a provider of IP-based network services to the financial community, and its parent company IPC Communications Inc. for $3.8 billion.
Global Crossing, a company that builds and operates a global IP-based fiber optic network, expects the acquisition to be completed in the second quarter of 2000 where, under the definitive merger agreement, 1.184 of its shares will be exchanged for each IXnet share not owned by IPC, and 5.417 Global Crossing shares will be exchanged for each of IPC's.
IXnet is seen as a good strategic fit for Global Crossing, allowing the company to move beyond just providing building-to-building connectivity in cities to providing desktop-to-desktop connectivity for multinationals worldwide, the company said in a statement.
Through the acquisition, IXnet will benefit from cost reduction when it switches over from its leased lines to provide global bandwidth to Global Crossing Networks, which is a global fiber optic network with 97,200 announced route miles, spanning 24 countries and 200 cities.
The acquisition, which is subject to regulatory approval and customary closing conditions, is not subject to shareholder approval, and will be accounted for as a purchase. The acquisition is expected to be tax-free to IPC and IXnet's shareholders.
IXnet provides IP connectivity to more than 600 financial institutions for global trading and communications, and also hosts and distributes market data, news, streaming video, research and analytics for more than 30 content providers. IXnet's clients include Morgan Stanley Dean Witter & Co., Goldman, Sachs & Co., Merrill Lynch & Co. Inc., Citigroup Inc., Chase Manhattan Bank Corp., Deutsche Bank AG, Barclays Bank PLC, Hong Kong and Shanghai Banking Corp. (HSBC), and Fidelity Investments.
Global Crossing Ltd. in Hamilton, Bermuda, is online at http://www.globalcrossing.com/. IXnet Inc. and IPC Communications Inc., in New York City, can be reached at +1-212-825-9060 or at http://www.ixnet.com or http://www.ipc.com.