The company Global Crossing Limited announced that it has purchased the company Impsat for US$ 9.32 per share, which adds to some US$ 95 million in cash, in addition to it will assume Impsat`s debt, estimated in US$ 241 million through June 2006, which Convergencialatina advanced.
With this operation, Global Crossing hopes to increase annual revenues to more than US$ 270 million, while that the annual operative savings after the integration would be for more than US$ 10 million. Likewise, it was indicated that this operation is subject to the approval of Impsat shareholders, the main holders of the debt and corresponding regulatory authorities.
The CEO of Global Crossing, John Legere, highlighted, “the combination of clients concentrated in data solutions, the ample network of Latin America and the capacities of IP solutions, is an attractive advantage for clients of both companies”.
On his behalf, the CEO of Impsat, Ricardo Verdaguer, highlighted, “this transaction demonstrates that value that Impsat has established within the telecommunications industry in Latin America and represents an attractive offer to our shareholders. Our team of employees oriented to customer service, and our product portfolio as well as our services based on IP, perfectly align with the strategy and culture of Global Crossing, which highlights technology, security, client support and control”. Moreover, he added, “considering the combination of our companies it will improve the solution offered to clients, will create scaled economies and will continue contributing to the objectives of economic development throughout the Latin American region
When asked by Convergencialatina, José Antonio Ríos, International president and Chief Administrative Officer of Global Crossing, stated, “so far, both companies’ letters of intent are already finished and signed. Next step is to wait until the regulating process comes to an end. Then, the definite acquisition will be signed, and we think that it will take three or four months".
He explained, “The merger is a trust sample from Global Crossing in the Latin American economy, mainly in the telecommunications sector”. He stated that “this is a significant growth for both parties, for both companies, and above all, for the customers. Global has operations in 60 countries and that is a benefit that will be extended to Impsat's customers, since they will have greater services with better quality”.
Both companies have had a commercial relation since 2000, when Global Crossing chose Impsat as one of the main points of presence (PoP) for Global Crossing's Latin American network, known as South American Crossing. Impsat has also been Global Crossing's customer in Latin America since 2000.
Impsat’s acquisition will speed up Global Crossing’s strategy to provide convergent IP services to telecommunications companies and operators at global level as well as to optimize the company’s finances. Impsat – leader IP solutions, hosting and added value data solutions provider in Latin America—will incorporate more than 4,500 customers to Global Crossing’s portfolio, backed up by a sales dedicated and customers assistance team with local presence in seven Latin American countries. Impsat's wide IP network, connecting the main cities, its 15 metropolitan networks and the 15 hosting advanced center will provide a greater range of services and coverage of Global Crossing's operations in Latin America. Impsat will also increase scale to company’s regional presence and it will strengthen its competitive position as service provider for corporate customers of multinational telecommunications.