The Titan Corporation has announced that it has entered into a definitive agreement to acquire GlobalNet, a provider of international voice, data, and Internet services for approximately $35 million in Titan common stock.
According to a statement the transaction, which is expected to close in the first quarter of 2002, will add approximately $70 to $75 million to Titan’s 2002 revenues and will be accretive to Titan’s 2002 earnings.
Upon the completion of the acquisition, GlobalNet will become a part of Titan Wireless, which also provides communications services in developing markets.
Under the terms of the definitive agreement, a newly formed subsidiary of Titan will be merged with and into GlobalNet, with GlobalNet surviving the merger as a wholly owned subsidiary of Titan.
All of the outstanding shares of GlobalNet stock will be exchanged for Titan stock and cash in lieu of fractional shares.
Since its founding in 1996, GlobalNet has focused on providing international voice, data, and Internet services to US and foreign based communications service providers operating in capacity constrained telecommunications corridors in Latin America.
More than 15 countries are currently being served by GlobalNet’s Internet Protocol (IP) network, which uses packet-switched technology to utilise bandwidth capacity more efficiently than circuit-switched carriers. More recently, the company has focused on providing additional value added services such as IP hosting.