Hong Kong-based telecommunications firm Asia Global Crossing has agreed to purchase the Asian broadband data operations of IXnet along with its hardware arm IPC, in an effort to rapidly expand its data services business.
In addition, Asia Global Crossing has obtained the global rights to Australia and New Zealand from its parent company Global Crossing. The entire transaction will take place as a share exchange of 26.8 million Asia Global Crossing shares, which are currently trading on the New York stock exchange at $US5.80 ($A11).
The telco claims the combined deals will immediately expand its multinational customer base adding 140 corporations to its operations, including American Express, JP Morgan Chase, National Australia Bank and Salomon Smith Barney.
AGC hopes to double data services revenue while adding a substantial amount of engineering and sales talent to its ranks.
"Asia Global Crossing will be able to leverage IXnet's already strong position in the region, especially in Australian and New Zealand which are untapped markets for us," said AGC CEO John Legere.
"We believe Australia could quickly become our third largest market for data services. Already we have accelerated the deployment of our Internet Protocol (IP) node in Australia. The installation will be complete and we will be offering IP transit, International Private Leased Circuit (IPLC), Asynchronous Transfer Mode (ATM) and frame relay services in the end of the third quarter of this year."