FRAMINGHAM (02/22/2000) - Global Crossing Ltd., which is building and operating an advanced global IP-based fiber-optic network, has announced plans to acquire one of the top IP network services providers to Wall Street firms.
Global Crossing's $3.8 billion stock deal for IXnet Inc. and its parent company, IPC Communications Inc., would provide it an entry into more than 600 financial institutions that are customers of IXnet. IXnet provides "single-pipe" IP connectivity to brokerages for global trading and communications. In addition, the firm also hosts and distributes market data, news, streaming video, research and analysis for more than 30 leading content providers to global financial firms.
Hamilton, Bermuda-based Global Crossing will acquire both IXnet and its parent company, New York-based IPC Communications Inc., which own approximately 73% of IXnet's fully diluted shares. IPC provides sophisticated desktop trading systems to financial institutions.
IXnet's customers include Morgan Stanley Dean Witter & Co., Goldman Sachs & Co., Merrill Lynch & Co., Citigroup Inc. and The Chase Manhattan Corp.
The acquisition is expected to be closed during the second quarter, pending regulatory approval. Shareholder approval isn't required for the deal, the companies said.