July 19, 2004 -- (WEB HOST INDUSTRY REVIEW) -- Managed application and Web hosting provider Globix (globix.com) announced on Monday that it has merged with NEON Communications (neoninc.com), a provider of optical networking services for customers in the Northeast and mid-Atlantic markets.
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NEON will become a wholly owned subsidiary of Globix as a result of the merger. Data center locations will be in New York, Atlanta, Santa Clara, California and London as well as remote data center and colocation sites integrated along NEON's fiber network in New York, Baltimore, Philadelphia, northern New Jersey and throughout New England.
"The merger creates a win-win for the combined companies' investors and customers," says Pete Stevenson, president and CEO of Globix. "It's a merger consistent with our growth plans and provides a significant level of vertical integration for the combined entity. We expect that cost savings achieved by combining operations will help fuel the growth of new transport, IP and value added services."
Holders of NEON common stock will receive approximately 27.6 million shares of Globix common stock, representing approximately 56.7 percent outstanding shares of common stock in the combined company. The transaction is subject to approval by NEON stockholders, registration of Globix common stock and other regulatory reguirements.
"By combining the talented work forces, systems, products and capital resources of each company we will be in a good position to continue NEON's network development and integrate Globix's IP and infrastructure management services with ours for expansion into additional markets," says Steve Courter, chairman and CEO of NEON.
