Teleglobe International Holdings announced plans to acquire ITXC, the largest provider of international VoIP wholesale services with direct relationships with carriers in more than 175 countries.
Teleglobe has been a major player in international telecommunications for well over 50 years and ranks among the top five providers of international wholesale voice, data, IP and mobile roaming services. Teleglobe's network reaches more than 240 countries and territories and is physically interconnected to approximately 275 fixed-line telecommunications operators and 360 mobile operators. Teleglobe ranks among the leading wholesale providers of voice, data, IP and mobile roaming services. The merged company will continue to operate under the Teleglobe name and is expected to receive a NASDAQ listing. The combined company's main operations will continue to be located in Montreal (Quebec). Its voice business will be managed from ITXC's current headquarters in Princeton, New Jersey and will also have operations in Reston, Virginia and Montreal. Some highlights of the deal:
- After the merger, Teleglobe will be one of the top three international voice carriers. The company hopes to improve operational efficiency by the application of ITXC's automated technology to Teleglobe's older back-office processes.
- Once the transaction is closed, holders of ITXC's common stock will receive common shares of a newly formed parent company of the Teleglobe group of companies, representing approximately 28% of the new Teleglobe parent company.
- Liam Strong will continue to lead Teleglobe as President and CEO.
- Tom Evslin, ITXC's current Chairman and CEO, will become non-executive Chairman of the Board of Directors.
- Cerberus Capital Management, L.P., Teleglobe's current controlling shareholder, will continue to own a majority of Teleglobe
- ITXC and Teleglobe had revenues on a combined basis for the quarter ended 30-Sept-2003 of approximately USD$286.8 million. The combined company expects to have positive net cash flows by the end of 2004.
- For Q3 2003, minutes of use on the ITXC network were 949 million, up from 838 million minutes in Q3 2002 and down from 999 million minutes in Q2 2003. Revenue per minute decreased from 8.4 cents in Q2 to 7.9 cents in Q3 2003.
http://www.itxc.net
- Teleglobe carries approximately 7.4 billion minutes of voice traffic a year, has ownership in 100 worldwide cable networks, and satellite networks and has Internet peering relationships with many of the other major leading international Internet providers.
- In June 2003, Teleglobe was relaunched as a provider of international voice, wireless roaming, data and Internet services following a corporate restructuring under which TLGB Acquisition LLC, an affiliate of Cerberus Capital Management and TenX Capital Partners, gained control of the company. Since its emergence from bankruptcy, Teleglobe has had positive net cash flows.
- In May 2002, Teleglobe filed bankruptcy papers with the Ontario Superior Court.
- On April 24, BCE (Bell Canada Enterprises), Canada's largest communications company, announced that it would cease long-term funding of Teleglobe.
- ITXC was founded in 1997.
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