Global Crossing has announced that its subsidiary, GC Acquisitions UK Limited, has formally acquired Fibernet Group Plc. GC Acquisitions UK will pay Fibernet shareholders 78 pence (approximately $1.48) per share, for a total equity value of approximately £49.8 million sterling ($94.6 million).

In response to its offer to Fibernet shareholders on September 14, 2006, GC Acquisitions UK has received acceptances as to 91% of Fibernet's issued shares. Having declared the offer unconditional in all respects and having thereby acquired and taken control of Fibernet, GC Acquisitions UK has ensured its ability to acquire all of the remaining shares through the UK's compulsory share acquisition process.

Fibernet's roster of enterprise and carrier customers in the financial, insurance and retail segments complements Global Crossing's market position in the UK government and rail sectors. These customers, together with Fibernet's capabilities, are seen as complementing Global Crossing's portfolio of IP solutions.

Fibernet and Global Crossing have had a long-standing commercial relationship, which is expected to facilitate the transition for customers of both companies.

Global Crossing plans to integrate Fibernet's business into its UK operations, and it expects that Fibernet will add more than $80 million in annual revenue after elimination of $10 million of inter-company revenue.

On completion of integration and achievement of operating cost reductions, Fibernet is expected to add more than $30 million in annual EBITDA. Additionally, Global Crossing expects synergies in the form of reduced capital expenditures of up to $10 million.

It is expected that operating and capital expense synergies can be achieved by eliminating duplicated operating and administrative staff and costs, public company expenses, duplicated leased operating and administrative facilities and lowered capital requirements through the use of Global Crossing's network.

Integration is expected to take 12 to 18 months at a one-time cost of up to $10 million. Hawkpoint Partners Limited was Global Crossing's sole financial advisor and Latham and Watkins provided legal counsel on the transaction.