FLORHAM PARK, N.J., Nov. 1, 2010 /PRNewswire-FirstCall/ -- 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 $27 million, including $15 million in connection with the repayment of existing debt.
"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 $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 advantage."
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®, 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 network."
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 http://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.