Global Crossing Ltd. to Buy Impsat Fiber Networks for 0.37 Times Revenue

Weekly Corporate Growth Report, Nov 6, 2006

The Deal: Global Crossing Limited has announced an agreement to acquire lmpsat Fiber Networks. Under the terms of the deal. Global Crossing will pay S95 million in cash for lmpsal. Global Crossing will also assume S241 million in debt, which, when offset by Impsal's S23 million cash balance, gives the deal an enterprise value of S313 million. Global Crossing expects to close the deal in the first quarter of 2007.

Discussion: lmpsat Fiber Networks, based in Buenos Aires, Argentina, is a major player in the Latin American telecommunications market. The company provides integrated broadband voice and data services in seven Latin American nations and in the United States. The company operates local access networks, long distance fiber-optic networks, and satellite networks. lmpsat offers wholesale communications service to corporations and government agencies.

Global Crossing operates a global system of major Internet protocol (IP) based communications networks, The company operates network systems connecting the Americas and Europe .ind links to Asia through agreements with Asia Netcom. Global Crossing system supports a range of communications services including Internet access, voice transmission, and business data services.

The acquisition is part of a Global Crossing strategy to build up a base of multinational telecommunications companies across the world. Global Crossing also recently purchased UK carrier Fibernet Group.