Wednesday, October 25, 2006

Global Crossing to Acquire Impsat for Latin American Presence

Global Crossing agreed to acquire Impsat, a provider of private telecommunications network and Internet services in Latin America, for $336 million, consisting of $95 million in cash and assumption of $241 million of debt.

Impsat currently provides services to more than 4,500 national and multinational clients, and has operations in Argentina, Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United States.

The companies have had a commercial relationship since 2000, when Global Crossing selected Impsat as one of its providers of Point of Presence (PoP) facilities for Global Crossing's Latin American network, known as South American Crossing.

Global Crossing said Impsat's extensive IP-based intercity network, 15 metropolitan networks and 15 advanced hosting centers will provide a greater breadth of services and coverage to its Latin American operations. Global Crossing expects the acquisition to contribute annual revenue of more than $270 million, and to yield annual Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of more than $70 million after operational synergies are fully realized.


  • In August 2006, 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.