Global Crossing snaps up Fibernet

For almost a cool £50m...

GC Acquisitions UK - the subsidiary of IP-services provider Global Crossing - has acquired high-speed networking company Fibernet in a deal valued at £49.8m.

John Legere, chief executive officer of Global Crossing, said the addition of Fibernet's corporate and ISP customers would strengthen its position, both in the UK market and on the world stage, as well as being good for the bottom line. Global Crossing said it expects Fibernet to add more than $80m in annual revenue after the elimination of $10m of inter-company revenue.

The next-gen telco said Fibernet's customer roster - taking in the financial, insurance and retail sectors - was a good fit with its own public sector and rail focus.

Global Crossing plans to integrate Fibernet's business into its UK operations. This is expected to take 12 to 18 months and to have a one-time cost of up to $10m.

Last year Global Crossing inked a £100m deal with the British Council to provide a fully managed terrestrial and satellite IP-based network, and back in 2004 it won an $80m UK government converged comms contract.