WHITE PLAINS, N.Y., April 13, 2011 - AboveNet, Inc. (NYSE:ABVT), a leading provider of high bandwidth connectivity solutions, today announced it has provided fiber connectivity into DuPont Fabros Technology, Inc (DFT) wholesale data center NJ1 located in Piscataway, New Jersey. AboveNet is already connected to DFT's data centers located in Northern Virginia and suburban Chicago and is in the process of building out to DFT's newest data center development, SC1, located in Santa Clara, California.
Utilizing DFT's underground and secure 3-lateral conduit bank system, AboveNet will deploy equipment at DFT's NJ1 data center, making the facility an IP and Metro Ethernet POP. By utilizing AboveNet's private, fiber optic network and extensive metro footprint for high bandwidth connectivity, customers within NJ1 will be able to take advantage of connectivity to two major carrier hotels located in the New York City Metro area, enabling them access to key business hubs throughout the world.
"Our customers must have access to scalable, diverse high bandwidth connectivity with no network interruptions," said Hossein Fateh, president and chief executive officer for DuPont Fabros Technology. "AboveNet has and continues to provide high performance fiber optic networks for our customers' mission critical business applications."
AboveNet provides a complete portfolio of metro Ethernet, WDM, Long Haul and IP transit services. Potential benefits to DFT customers include:
Support for multiple protocols - simplifies connectivity into the LAN;
Scalability - adding capacity to the network is as simple as inserting a card and customers can scale from 1Gbps to 40Gbps;
Reliability - AboveNet WDM networks are designed to ensure availability, reliability and security;
Business continuity - Fiber Channel, ESCON or FICON for data mirroring, Storage Area Networks or other disaster recovery solutions;
Diversity - bypasses the ILEC or CLEC legacy networks;
Simple fiber handoff - no copper, pure fiber based network;
Industry - leading latency guarantee - added assurance with AboveNet's Agility Guarantee program.
DFT's enterprise and carrier customers also can access AboveNet's world-class fiber optic network infrastructure including more than 2.3 million fiber miles, an intercity network spanning approximately 12,000 route miles and a global Tier 1 IP backbone.
"We focus exclusively on the needs of the high bandwidth customer, so we designed our network to reach key Internet hub cities and markets with a high concentration of web-centric businesses, financial services organizations and enterprises with a multinational presence," said Bill LaPerch, president and chief executive officer for AboveNet. "We are pleased to work with DuPont Fabros Technology to bring this extensive network to their enterprise and carrier customers."
About AboveNet, Inc.
AboveNet, Inc. provides high bandwidth connectivity solutions for business and carriers. Its private optical network delivers key network and IP services in and among top U.S. and European markets. AboveNet's network is widely used in demanding markets such as financial services, media, health care, retail and government.
Thursday, April 21, 2011
Monday, April 11, 2011
Level 3 to Acquire Global Crossing
BROOMFIELD, Colo. & FLORHAM PARK, N.J.--(BUSINESS WIRE)-- Level 3 Communications, Inc. (NASDAQ: LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that they have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a tax-free, stock-for-stock transaction. The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries. This transaction will create a company with pro forma combined 2010 revenues of $6.26 billion and pro forma combined 2010 Adjusted EBITDA of $1.27 billion before synergies and $1.57 billion after expected synergies.
Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. Based on Level 3's closing stock price on April 8, 2011, the transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0 billion, including the assumption of approximately $1.1 billion of net debt as of Dec. 31, 2010. Global Crossing has approximately 79 million basic and preferred shares outstanding and approximately 83 million shares outstanding on a fully diluted basis, giving effect to outstanding stock awards, but excluding performance-based stock grants.
The transaction will create a company with a unique capability to meet local, national and global customer requirements in a wide range of markets. By combining the strengths of each company, the new entity will offer enterprise, government, wholesale, content, and web-based customers a comprehensive portfolio of end-to-end data, video and voice solutions.
"This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing," said Jim Crowe, chief executive officer of Level 3. "The complementary fit between the two companies' networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers."
"This transaction will provide Global Crossing shareholders with an attractive premium and significant participation in the upside potential of a leading communications company with industry-leading scale and capabilities. The combined service capabilities, extensive network assets and talented employees of the two companies will create a stronger global communications competitor with compelling offerings in the marketplace," said John Legere, chief executive officer of Global Crossing. "Each of our companies has a reputation for being nimble and flexible in meeting customers' communications needs, and we expect that to continue — with the added benefit of offering customers significantly greater reach, products and services."
"We're looking forward to welcoming Singapore Technologies Telemedia, Global Crossing's largest shareholder, as a significant investor," said Crowe. "They are exceptionally sophisticated managers, with holdings in telecommunications and information companies in a number of countries. They know the technology and they know the industry. The breadth of their communications experience and their knowledge of international markets will be a great asset to us."
"This strategic combination is an important milestone for both Global Crossing and Level 3, and a value-creating proposition for all stakeholders," said Lee Theng Kiat, president and chief executive officer of Singapore Technologies Telemedia (ST Telemedia). "Going forward, we believe the combined strengths of the two companies will position it in a very favorable, competitive position to expand in the U.S. and compete globally."
"We are committed to creating a high-performing combined business through a carefully managed integration plan executed by a select team from both companies," said Jeff Storey, president and chief operating officer of Level 3. "We will begin integration planning immediately and bring an aggressive, disciplined approach to the process. After the closing, as we integrate the two operations and work to achieve our expected synergies, we will be dedicated to maintaining our focus on providing excellent customer service and growing our combined revenues."
"The combination improves our balance sheet and credit profile immediately upon closing with further improvement as we achieve the benefits of integration. Additionally, the transaction accelerates the achievement of Level 3's target leverage ratio of three to five times debt to Adjusted EBITDA," said Sunit Patel, chief financial officer of Level 3. "Including the benefit of synergies and the cost of integration, we expect the transaction to be accretive to Level 3's Free Cash Flow per share in 2013 and to give us the financial strength to capitalize on the many opportunities available in the global market."
Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. Based on Level 3's closing stock price on April 8, 2011, the transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0 billion, including the assumption of approximately $1.1 billion of net debt as of Dec. 31, 2010. Global Crossing has approximately 79 million basic and preferred shares outstanding and approximately 83 million shares outstanding on a fully diluted basis, giving effect to outstanding stock awards, but excluding performance-based stock grants.
The transaction will create a company with a unique capability to meet local, national and global customer requirements in a wide range of markets. By combining the strengths of each company, the new entity will offer enterprise, government, wholesale, content, and web-based customers a comprehensive portfolio of end-to-end data, video and voice solutions.
"This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing," said Jim Crowe, chief executive officer of Level 3. "The complementary fit between the two companies' networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers."
"This transaction will provide Global Crossing shareholders with an attractive premium and significant participation in the upside potential of a leading communications company with industry-leading scale and capabilities. The combined service capabilities, extensive network assets and talented employees of the two companies will create a stronger global communications competitor with compelling offerings in the marketplace," said John Legere, chief executive officer of Global Crossing. "Each of our companies has a reputation for being nimble and flexible in meeting customers' communications needs, and we expect that to continue — with the added benefit of offering customers significantly greater reach, products and services."
"We're looking forward to welcoming Singapore Technologies Telemedia, Global Crossing's largest shareholder, as a significant investor," said Crowe. "They are exceptionally sophisticated managers, with holdings in telecommunications and information companies in a number of countries. They know the technology and they know the industry. The breadth of their communications experience and their knowledge of international markets will be a great asset to us."
"This strategic combination is an important milestone for both Global Crossing and Level 3, and a value-creating proposition for all stakeholders," said Lee Theng Kiat, president and chief executive officer of Singapore Technologies Telemedia (ST Telemedia). "Going forward, we believe the combined strengths of the two companies will position it in a very favorable, competitive position to expand in the U.S. and compete globally."
"We are committed to creating a high-performing combined business through a carefully managed integration plan executed by a select team from both companies," said Jeff Storey, president and chief operating officer of Level 3. "We will begin integration planning immediately and bring an aggressive, disciplined approach to the process. After the closing, as we integrate the two operations and work to achieve our expected synergies, we will be dedicated to maintaining our focus on providing excellent customer service and growing our combined revenues."
"The combination improves our balance sheet and credit profile immediately upon closing with further improvement as we achieve the benefits of integration. Additionally, the transaction accelerates the achievement of Level 3's target leverage ratio of three to five times debt to Adjusted EBITDA," said Sunit Patel, chief financial officer of Level 3. "Including the benefit of synergies and the cost of integration, we expect the transaction to be accretive to Level 3's Free Cash Flow per share in 2013 and to give us the financial strength to capitalize on the many opportunities available in the global market."
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