Global Center Opens London Facility

GlobalCenter Inc. officially opened its new Web hosting center on Thursday, hot on the heels of last week's announcement that the company will be bought by Exodus Communications Inc. from Global Crossing Ltd. for about US$6.5 billion in stock.

"This center is about the importance of scale, and the Exodus and Global Crossing combination will deliver that scale. The global center is and will be a major player in this new economy," said Leo J. Hindery Jr., chief executive officer (CEO) of Global Crossing, as well as CEO of GlobalCenter, during the opening.

Hindery also announced GlobalCenter's plans to launch another center in Dublin in 2001, which is planned to be Europe's largest data center at 110,000 square feet (9,900 square meters), employing more than 100 people.

The 42,500 square feet (3,825 square meters) data center in London's Docklands area, a stone's throw from the Millennium Dome, is expected to employ 50 technology specialists in IP (Internet protocol) networking, infrastructure management, applications equipment services and security, Hindery said.

The center is already a third full with clients and is expected to reach 100 percent capacity within the next six months, said Andrew Royle, GlobalCenter's associate director of business strategy.

Under the terms of the deal with Exodus announced on Sept. 28, Global Crossing will receive common shares of Exodus worth $6.525 billion, divided by the average closing price of Exodus stock, prior to the closing of the transaction, subject to a collar -- a preset minimum and maximum valuation. [See "Exodus to Acquire GlobalCenter for Over US$6B," Sept. 28.] Exodus is an Internet hosting services company.

The companies also agreed to a joint venture in Asia and a 10 year network services agreement. The joint venture pools all their Web hosting and managed services in Asia. Exodus will own 67 percent of the venture, and Asia Global Crossing Ltd. will own 33 percent, according to their statement. In return for preferred pricing from Global Crossing for network services and assets, Exodus will purchase half or more of its future network needs outside of Asia from Global Crossing.

The deal between Exodus and Global Crossing is expected to be completed in the first quarter of 2001. Though no officials from Exodus spoke at the London center launch, speeches were made by the U.S. Ambassador to Britain, Philip Lader, and Michael Portillo, Member of Parliament and the Tory Shadow Chancellor.

Also speaking was Tim Berners-Lee, founder and director of the World Wide Web Consortium (W3C), who is generally credited as leading an effort, with Robert Cailliau to write the underlying protocols -- including HTTP, or Hypertext Protocol -- for what later came to be known as the World Wide Web.

Global Crossing, in Hamilton, Bermuda, can be reached at +1-441-296-8600 or at http://www.globalcrossing.com/. Exodus, based in Santa Clara, California, can be reached at +1-408-346-2200 or http://www.exodus.net/.

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