Global Crossing is to sell its IPC Trading System units to an investment group led by Goldman Sachs Capital Partners 2000 (GSCP), for $360 million in cash. The transaction is anticipated to close by year end.
Acquired by Global Crossing in June 2000 as part of the acquisition of IXnet, IPC Trading Systems provides desktop trading systems to the global financial community.
As part of the transaction, Asia Global Crossing will divest the Asia-Pacific assets and operations of IPC Trading Systems, which it acquired as part of the acquisition of IXnet Asia from parent Global Crossing in July 2001, for $22.5 million of the total proceeds.
Global Crossing and Asia Global Crossing will also enter into a six-year network agreement that will establish it as the preferred provider for all IPC's telecommunications needs.
John Legere, chief executive officer of Global Crossing and Asia Global Crossing, comments: "The divestiture of IPC, as well as other non-core assets such as Global Marine Systems, will strengthen our focus on becoming one of the world's leading telecommunications service providers, and at the same time improve our company's cash position."
IPC will operate as an independent company with headquarters in New York and operations in all major financial centres around the world.