Thursday, August 24, 2006

Global Crossing Offers to Acquire UK's Fibernet for $96 Million

Global Crossing announced a cash offer to acquire all of the issued and to-be-issued shares of Fibernet Group Plc , a UK-based provider of specialist telecommunications networks, for approximately $96.1 million (50.6 million British pounds sterling).

Fibernet serves a marquee roster of UK corporate enterprise and carrier customers, including the Bank of England, Citigroup, IBM and Carphone Warehouse. provides its services from a national fiber network in the UK and also from its metropolitan networks in London, Bristol, Birmingham, Edinburgh, Frankfurt, Glasgow, Leeds, Manchester and Reading. The company has more than 100 points of presence in the UK and an additional 12 in Frankfurt, Germany. In the financial year ended August 31, 2005, Fibernet reported revenue of 47.9 million pounds sterling and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of 15.9 million pounds sterling, or $91.0 million and $31.2 million, respectively, at current exchange rates.

Global Crossing and Fibernet have complementary long haul networks.

"Global Crossing and Fibernet have complementary businesses in the UK. The opportunity to combine and grow these businesses is compelling and exciting for us. I look forward to a quick and seamless integration upon closing and to better serving existing customers and welcoming new customers with the expanded range of products we will offer," said John Legere, chief executive officer of Global Crossing.

The acquisition is expected to close in the fourth quarter of 2006 and is conditioned on acceptance by Fibernet shareholders and regulatory approvals.


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