Florham Park, New Jersey – (The Hosting News) – January 4, 2006 – Managed services, data, and IP VPN company, Global Crossing, has completed the sale of its small business group (SBG) to Matrix Telecom, a Platinum Equity company, for $40.5 million.
Global Crossing had already received $32.5 million in the second quarter of 2005 for the small business group, and with the closing of the transaction, it has received the remaining proceeds due. As previously announced, after estimated purchase price adjustments, the payment of certain fees and deduction of certain retained liabilities, Global Crossing’s net cash proceeds were approximately $35 million.
In addition to the sale closing, Global Crossing and Matrix have executed a long-term carrier services agreement under which Global Crossing is providing a full suite of voice, data and IP services to Matrix. Revenue from this agreement is in addition to the cash proceeds mentioned above.
According to Global Crossing CEO, John Legere, ”Our business is firmly focused on serving multinational enterprises and carriers with global, converged IP services, and completing this transaction allows us to continue executing on our long-term strategy. I want to thank the SBG employees for their excellent performance, and I know they’ll be true assets to Matrix Telecom.”
To learn more about Global Crossing, please visit: www.globalcrossing.com.