Global Crossing Finalizes Sale of Small Business Group to Platinum Equity's Matrix Telecom4 January 2006
Global Crossing (Nasdaq: GLBC) announced today that it has completed the sale of its small business group (SBG) to Matrix Telecom(R), a Platinum Equity company, for $40.5 million. GC previously received $32.5 million in the second quarter of 2005, and with the closing of the transaction, it has received the remaining proceeds due. As previously announced, after estimated purchase price adjustments, the payment of certain fees and deduction of certain retained liabilities, Global Crossing's net cash proceeds were approximately $35 million.
In addition to the sale closing, Global Crossing and Matrix have executed a long-term carrier services agreement under which Global Crossing is providing a full suite of voice, data and IP services to Matrix. Revenue from this agreement is in addition to the cash proceeds mentioned above.
"Our business is firmly focused on serving multinational enterprises and carriers with global, converged IP services, and completing this transaction allows us to continue executing on our long-term strategy," said John Legere, Global Crossing's chief executive officer. "I want to thank the SBG employees for their excellent performance, and I know they'll be true assets to Matrix Telecom."
ABO:T GLOBAL CROSSING
Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to nearly 600 cities, 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.
Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to 36 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs.
Please visit http://www.globalcrossing.com for more information about Global Crossing.
This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: the company's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the :.S. Government; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks arising out of the company's material weaknesses in internal controls and possible difficulties and delays in improving such controls; the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to unreserved contingent liabilities; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contacts
Tisha Kresler
+ 1 973 937 0146
PR@globalcrossing.com
Kendra Langlie
Latin America
+ 1 305 808 5912
LatAmPR@globalcrossing.com
Mish Desmidt
Europe
+ 44 (0) 1256 732 866
EuropePR@globalcrossing.com
Analysts/Investors Contact
Laurinda Pang
+ 1 800 836 0342
glbc@globalcrossing.com
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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