Global Crossing Acquires Genesis NetworksBy Global Crossing, PRNE
Sunday, October 31, 2010
Strategic acquisition adds innovative video solutions in broadcast, media, special event and entertainment customer segments
FLORHAM PARK, New Jersey, November 1, 2010 - Global Crossing (Nasdaq: GLBC), a leading IP solutions provider with the
world's first integrated global IP-based network, today announced that it has
acquired global video services provider Genesis Networks, an innovator in
high-performance, rich-media and video-based solutions serving the world's
major broadcasters, producers and aggregators of specialized programming.
Global Crossing paid aggregate consideration of approximately US$27 million,
including US$15 million in connection with the repayment of existing debt.
(Logo: photos.prnewswire.com/prnh/20101101/NY91784LOGO-a) (Logo: www.newscom.com/cgi-bin/prnh/20101101/NY91784LOGO-a) (Logo: photos.prnewswire.com/prnh/20101101/NY91784LOGO-b) (Logo: www.newscom.com/cgi-bin/prnh/20101101/NY91784LOGO-b)
"The proliferation of HD and 3D video will soon outstrip the capacities
of legacy technologies, making media-centric global fiber optic networks like
ours the most viable option for broadcasters, producers and distributors,"
said John Legere, chief executive officer of Global Crossing. "By acquiring
Genesis Networks, Global Crossing takes an ambitious step towards providing
new and differentiated value-added solutions to address specialized video
requirements across multiple industries."
The market for these services is growing. Industry research firm
Infonetics Research forecasts that worldwide revenue for video services,
including IPTV, cable video and satellite video services, will top US$250
billion in 2014. And, according to the Visual Networking Index (VNI), an
industry benchmark report produced by Cisco, 3D and HD Internet video will
comprise 46 percent of consumer Internet video traffic by 2014.
"Technological innovations are driving the consumption of video through
diverse media, such as online, mobile, and broadcast formats, making Genesis
a strategic acquisition for Global Crossing," said Legere. "Social and
demographic trends are also creating opportunities in this segment. As people
move around the world for work and pleasure, their interests and cultures
geographically move with them. This is creating an ever-increasing demand for
the movement of video programming around the planet and the richness of these
media is driving these requirements to global fiber-based network solutions,
where Global Crossing holds unique capabilities and significant competitive
Founded in 2001, Genesis Networks is considered an innovator in the
broadcast video over IP and satellite solutions market. Its purpose-built
network stretches across 70 cities on five continents and links important
international media centers through 225 on-net locations. By contrast, the
Global Crossing network offers access to more than 700 cities around the
globe and a strong presence in Latin America, a new market for Genesis
Networks. For Global Crossing, this acquisition provides opportunities to
attract new customers and expand service offerings into vertical markets that
require high-performance, rich-media, video-based delivery, such as
healthcare, cinema, music, gaming, government and distance learning.
Legere added that the purchase of Genesis Networks supports Global
Crossing's strategy of investing in emerging areas, deepening penetration
into vertical markets, furthering the differentiation of solutions and
services, expanding customer relationships, and leveraging the company's
global assets to seize new opportunities.
"Through this acquisition, Global Crossing validates its belief in the
dynamic and growing global media marketplace. With its global network,
customer-centric management team and financial strength, we could not have
found a better owner to help take our business to the next level," commented
Paul Dujardin, founder and chairman of Genesis Networks.
Genesis Networks' global customer base comprises some of the most
recognizable broadcast and program distributors in the world, including
leading sports networks, news broadcasters, sports rights holders, news
agencies and international broadcasters. Genesis has also provided
media-centric services for numerous sporting and special events, including
the Olympics, World Cup, international auto racing, Grand Slam tennis
tournaments, major golf tournaments, the U.S. Presidential elections, G8 and
G-20 Summits and breaking news stories on five continents.
With this acquisition, Global Crossing gains Genesis Networks'
proprietary IRIS customer interface, which provides a unique "on-demand"
capability that allows customers direct access and control over their global
media distribution network, enabling self-provisioning and monitoring of all
aspects of their transmission services. IRIS features will be integrated into
uCommand(R), Global Crossing's existing online customer service portal. In
addition, Global Crossing gains the Genesis Networks Operations Center in
Manhattan that will monitor and manage the entire global video network.
Global Crossing will operate this as a distinct business unit inside of
Global Crossing, led by Mike Antonovich of Genesis Networks. "Genesis is
excited to join Global Crossing, an established market leader that brings new
opportunities and allows us to leverage a truly global network," said
Antonovich, who will become the managing director of this new unit. "Global
Crossing and Genesis share a strong dedication to innovation and a commitment
to excellent customer service. Our combined teams, talents and technologies
will enable truly world-class media and broadcast solutions on a global
ABOUT GENESIS NETWORKS:
Genesis Networks operates one of the world's most advanced video fiber
optic networks, providing service across 70 cities on five continents.
Genesis Networks provides broadcasters, cable networks, production companies,
and corporations with high-quality customized global video transmission
services that are reliable, flexible and affordable. The Genesis Networks
platform is a next-generation, IP-based fiber optic and satellite video
network with cutting-edge switching and compression technologies. With access
to more than 225 locations worldwide and growing, many organizations can now
take advantage of Genesis Networks services. The company's network operations
center in New York City maintains the health and standards of the global
network while the Genesis Networks proprietary software system, IRIS, gives
clients remote, real-time network monitoring, scheduling, and control
capabilities. For additional information on Genesis Networks and its
innovative products, please visit www.gen-networks.com.
ABOUT GLOBAL CROSSING
Global Crossing (Nasdaq: GLBC) is a leading global IP and Ethernet
solutions provider with the world's first integrated global IP-based network.
The company offers a full range of data, voice and collaboration services
with an industry leading customer experience to approximately 40 percent of
the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It
delivers converged IP services to more than 700 cities in more than 70
countries around the globe.
Website Access to Company Information
Global Crossing maintains a corporate website at
www.globalcrossing.com, and you can find additional information about
the company through the Investors pages on that website at
investors.globalcrossing.com. Global Crossing utilizes its website as
a channel of distribution of important information about the company. Global
Crossing routinely posts financial and other important information regarding
the company and its business, financial condition and operations on the
Investors web pages.
Visitors to the Investors web pages can view and print copies of Global
Crossing's SEC filings, including periodic and current reports on Forms 10-K,
10-Q, 8-K, and in respect of GCUK's Forms 20-F and 6-K, as soon as reasonably
practicable after those filings are made with the SEC. Copies of the charters
for each of the standing committees of Global Crossing's Board of Directors,
its Corporate Governance Guidelines, Ethics Policy, press releases and
analysts presentations are all available through the Investors web pages.
Please note that the information contained on any of Global Crossing's
websites is not incorporated by reference in, or considered to be a part of,
any document unless expressly incorporated by reference therein.
This press release contains statements about expected future events and
financial results that are forward-looking and subject to risks and
uncertainties that could cause the actual results to differ materially,
including: the impact on the business of current global economic conditions
and the tightening in global credit markets; increased competition and
pricing pressures resulting from technology advances and regulatory changes;
competitive disadvantages relative to competitors with superior resources;
the impact on the business of the tightening of budgets by UK government
agencies, including significant customers of GCUK; dependence on a number of
key personnel; the concentration of revenue in a limited number of customers,
and the rights of such customers to terminate their contracts or to simply
cease purchasing services thereunder; the influence of the company's parent,
and possible conflicts of interest of the parent or of certain of GCUK's
directors and officers; our ability to raise capital through financing
activities in an amount sufficient to pay our indebtedness and to fund our
other liquidity needs; exposure to contingent liabilities; and other risks
referenced from time to time in GCUK's filings with the Securities and
Exchange Commission. Global Crossing undertakes no duty to update information
contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING: Press Contacts Michael Schneider Global Crossing +1 973 937 0146 Michael.Schneider@globalcrossing.com Analysts/Investors Contact Mark Gottlieb + 1 800 836 0342 email@example.com
Press - Michael Schneider, Global Crossing, +1-973-937-0146, Michael.Schneider at globalcrossing.com; or Analysts/Investors - Mark Gottlieb, +1-800-836-0342, glbc at globalcrossing.com
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