The stockholders of Exodus voted overwhelmingly in favor of the issuance of the shares in the merger. Approximately 98% of the shares voted were in favor of the proposal. Exodus expects the transaction to be accretive to Exodus’ EBITDA in 2001. The transaction will be accounted for as a purchase.
Ellen Hancock, chairman and chief executive officer of Exodus, said, This combination gives us the scale, scope and global presence to extend our leadership position as a mission-critical Web hosting and managed services provider. With GlobalCenter, we have a far larger customer base and an expanded pool of highly skilled and dedicated employees. Combined, we will have approximately, 4000 customers to cross-sell Exodus managed services. Our strategic partners include Cisco, Compaq, Dell, Inktomi, Microsoft, Oracle and Sun Microsystems. These characteristics set Exodus apart from other companies in our industry and will enable us to continue to provide leading managed Web hosting solutions and services to our customers while expanding our worldwide network of Internet Data Centers.
As previously announced, Exodus and Global Crossing also signed a 10-year network agreement, under which Exodus receives preferred pricing on all network services and assets offered by Global Crossing, including long haul, local loop and dark fiber.
In addition, Exodus and Asia Global Crossing are in the process of forming a joint venture. The joint venture is expected to provide Exodus with growth opportunities through Asia Global Crossing’s relationships with companies such as Softbank and Microsoft.
