Exodus Communications, Inc, today announced it has entered into a definitive agreement to sell a substantial portion of its business and assets to Cable & Wireless plc for approximately US$575 million in cash plus the assumption of certain liabilities totalling approximately $180 million.
Under the agreement, Cable & Wireless has agreed to acquire all of Exodus and some of its foreign subsidiaries’ businesses. These include US, Japanese and European customer contracts, employees, selected corporate and Internet Data Centre (IDC) assets, intellectual property, including the Exodus brand.
The selected physical assets identified in the agreement, which has been approved by the Exodus board of directors, include 30 Exodus IDCs, 26 in the US, one each in Tokyo and Frankfurt, and two in London.
Exodus filed voluntary petitions for re-organisation under Chapter 11 of the US Bankruptcy Code on September 26, 2001.
The agreement with Cable & Wireless is subject to approval of the federal bankruptcy court in Wilmington, Delaware, where Exodus Chapter 11 case is pending.
The motion for approval of the sale will be filed with the bankruptcy court today. The agreement provides for the approval of bidding procedures to allow other qualified bidders to submit higher or better bids for the Exodus assets.
The company will request the bankruptcy court to approve the bidding procedures and termination fees on December 13. The company intends to seek final court approval of the transaction in January 2002.