Interesting NEWS:
Global Crossing Completes Sale of IPC Trading Systems Units for $360 Million
HAMILTON, Bermuda--(BUSINESS WIRE)--Dec. 20, 2001--Global Crossing Ltd., (NYSE:GX):
-- Investment Group Led by Goldman Sachs Capital Partners 2000
Makes Purchase
-- Global Crossing to be preferred provider for IPC's
telecommunications
-- IPC and Global Crossing will continue to jointly provide
managed communications services to financial institutions.
Global Crossing Ltd., (NYSE:GX) announced today that it has completed the sale of its IPC Trading System units to an investment group led by Goldman Sachs Capital Partners 2000 (GSCP), an affiliate of The Goldman Sachs Group, Inc., for $360 million in cash.
IPC Trading Systems is the leading provider of sophisticated desktop trading systems to the global financial community.
"This action strengthens our focus on becoming one of the world's leading telecommunications companies as it improves our cash position," said John Legere, chief executive officer of Global Crossing. "It also enables us to partner with IPC and GSCP to deliver the world-class service that our thousands of existing financial institution customers have come to expect."
"IPC remains committed to its customers in the financial markets," said Greg Kenepp, president of IPC. "We will continue to develop and provide innovative products, supported by our world class field service organization, that allow traders and other financial professionals to communicate and transact business."
As part of the transaction, Asia Global Crossing is divesting the Asia-Pacific assets and operations of IPC Trading Systems, which it acquired as part of the acquisition of IXnet Asia from parent Global Crossing in July 2001, for $22.5 million of the total proceeds.
Global Crossing and Asia Global Crossing have also entered into a six-year Network Agreement that will establish the companies as the preferred providers for all IPC's Telecommunications needs.
IPC will operate as an independent company with headquarters in New York and operations in all major financial centers around the world.
Global Crossing and Asia Global Crossing were advised on the transaction by JP Morgan Chase and UBS Warburg LLC. GSCP was advised by Goldman, Sachs & Co. Goldman, Sachs & Co. also served as Sole Bookrunner on $150 million of Senior Subordinated Notes and Goldman Sachs Credit Partners L.P. served as Sole Lead Arranger on $120 million of Senior Secured Credit Facilities in connection with the acquisition.
ABOUT GLOBAL CROSSING
Global Crossing Ltd. (NYSE:GX) provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. Global Crossing operates throughout the Americas and Europe, and provides services in Asia through its subsidiary, Asia Global Crossing (NYSE:AX). Please visit www.globalcrossing.com or www.asiaglobalcrossing.com for more information.
ABOUT GOLDMAN SACHS
Goldman Sachs is a leading global investment banking and securities firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. GSCP is the current investment vehicle of Goldman Sachs for making privately negotiated equity investments. GSCP was formed in July 2000 with total committed capital of $5.25 billion, $1.5 billion of which was committed by Goldman Sachs and its employees, with the remainder committed by institutional and individual investors.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission.
CONTACT:
Global Crossing Ltd.
Dan Coulter, + 1 973/410-5810 (media)
daniel.coulter@globalcrossing.com
Ken Simril, + 1 310/385-5200 (analysts/investors)
investors@globalcrossing.com
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