COMPANY PRESS RELEASE: Global Crossing Ltd have announced that it has completed the sale of its IPC Trading System units to an investment group led by Goldman Sachs Capital Partners 2000 (GSCP), an affiliate of The Goldman Sachs Group, Inc., for $360 million in cash.
IPC Trading Systems is the leading provider of sophisticated desktop trading systems to the global financial community.
This action strengthens our focus on becoming one of the world’s leading telecommunications companies as it improves our cash position, said John Legere, chief executive officer of Global Crossing. It also enables us to partner with IPC and GSCP to deliver the world-class service that our thousands of existing financial institution customers have come to expect.
IPC remains committed to its customers in the financial markets, said Greg Kenepp, president of IPC. We will continue to develop and provide innovative products, supported by our world class field service organization, that allow traders and other financial professionals to communicate and transact business.
As part of the transaction, Asia Global Crossing is divesting 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 have also entered into a six-year Network Agreement that will establish the companies as the preferred providers for all IPC’s Telecommunications needs.
IPC will operate as an independent company with headquarters in New York and operations in all major financial centers around the world.
Global Crossing and Asia Global Crossing were advised on the transaction by JP Morgan Chase and UBS Warburg LLC. GSCP was advised by Goldman, Sachs & Co. Goldman, Sachs & Co. also served as Sole Bookrunner on $150 million of Senior Subordinated Notes and Goldman Sachs Credit Partners L.P. served as Sole Lead Arranger on $120 million of Senior Secured Credit Facilities in connection with the acquisition.