Global Crossing Ltd. today announced it has agreed to acquire Impsat, a Latin American provider of IP, hosting and data solutions, for approximately $95 million. The transaction is expected to close in the first quarter of 2007.
Global Crossing said the acquisition will accelerate its strategy to provide converged IP services to enterprises and carriers globally, in addition to enhancing the companys financials.
Impsat will add more than 4,500 customers to Global Crossings ranks all of which are supported by a sales and customer care team with local presence in seven Latin American countries. Impsats IP-based intercity network, 15 metropolitan networks and 15 hosting centers will add to Global Crossings Latin American operations, the company said.
Global Crossing expects the acquisition to contribute annual revenue of more than $270 million, and to yield annual Adjusted EBITDA of more than $70 million after operational synergies are fully realized. Annual operational savings after integration are expected to be more than $10 million. 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 $10 million.
Global Crossing and Impsat have had a commercial relationship since 2000, when Global Crossing selected Impsat as one of its providers of PoP facilities for Global Crossings Latin American network, South American Crossing. Impsat also has been a customer of Global Crossing in Latin America since 2000.
Global Crossing Ltd. www.globalcrossing.com