Global Crossing Spends $3.8 Billion on IXnet Global Crossing Spends $3.8 Billion on IXnet Paul Jones
In a nod to the future of cross border trading, Global Crossing Ltd. Tuesday bought IP network services firm IXnet and its parent company IPC Communications for $3.8 billion in stock.
Under the terms of the deal, Global Crossing (GBLX) will release 1.18 shares for each IXnet (EXNT) share not owned by IPC, which owns 73 percent of IXnet's fully diluted shares. IPC (IPI) shareholders will get 5.4 Global Crossing shares for each IPC share in a separate exchange. The agreement values IXnet at $3.65 billion.
IXnet provides IP connectivity to a network of 600 financial clients, with points of presence (POPs) in 37 countries. The vast majority of its customers are in the global trading and global financial communications sector, and include heavyweights such as Citigroup, Chase, Goldman Sachs, Deutsche Bank, HSBC, and Nomura. IXnet also distributes finance-related content from more than 30 sources, and IPC has a 60 percent global-level hold on the desktop trading systems market.
