Exodus to Buy GlobalCenter

Purchase price for the wholly owned subsidiary of Global Crossing is more than $6 billion

October 2, 2000

1 Min Read

LONDON -- Exodus Communications,T Inc. and Global Crossing Ltd. announcedtoday that their boards of directors have approved a definitive mergeragreement under which Exodus® will acquire GlobalCenter Inc., a wholly ownedsubsidiary of Global Crossing. Exodus will issue a number of commonequivalent shares equal to £4.4 billion ($6.5bn) divided by the averageclosing price of Exodus stock prior to the closing of the transaction,subject to a collar. Based on the collar and Exodus' closing stock price of$53.25 on September 27, 2000, the current value of the transaction isapproximately $6.1 billion. The transaction is expected to be accretive toExodus' EBITDA in 2001. The transaction will be accounted for as a purchaseand is expected to close in the first quarter of 2001.

Exodus and GlobalCenter are leading providers of complex web hostingservices to business customers worldwide. The two companies would have apro forma annualised recurring revenue run rate of approximately $1.0billion (as of June 30, 2000 assuming the Exodus customer backlog isinstalled and combined with the current installed customer base). Exodusgains several additional Internet Data Centres from Global Centre whichexpand Exodus's European hosting capabilities. The combined company wouldhave 32 Internet Data Centres worldwide totalling approximately 2.6 milliongross square feet, almost 4,000 customers, and strategic partners thatinclude Cisco, Compaq, Dell, Inktomi, Microsoft, Oracle, Softbank and SunMicrosystems. The combined company will be positioned to capture newopportunities in the rapidly growing U.S. web hosting market which,according to a Forrester Research report issued earlier this year, isexpected to reach approximately $20 billion in 2004.


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