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Level 3 Sells IT Outsourcing Biz for $81.5M

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BROOMFIELD, Colo., Oct. 27 -- International communications and information services company Level 3 Communications is selling its IT outsourcing company, (i)Structure LLC, to another outsourcing company, Leonia, N.J.-based Infocrossing Inc. The $81.5 million deal is expected to close by the end of the year, pending regulatory approval.

Level 3 says it is divesting itself of an operation that is not a core business for the company. The purchase price includes $1.5 million of Infocrossing stock and is subject to customary working capital and certain other adjustments, including an increase of up to $10 million in cash to reimburse Level 3 for capital expenditures and other costs associated with providing services to new customers that are pending installation. Over the previous 90 days, (i)Structure has signed new contracts totaling approximately $77 million over contract terms ranging from three to six years, according to a statement by Infocrossing.

Infocrossing and (i)Structure provide solutions that enable companies to outsource selective portions of their data center operations that are no longer cost-effective or practical to maintain in-house. (i)Structure has headquarters in Broomfield and serves clients in the central and western US. Level 3 says (i)Structure generated approximately $35 million of revenue and $5 million of adjusted OIBDA (operating income before depreciation and amortization) for the six months ending June 30, 2005. Infocrossing says it expects the purchase to add approximately $76 million in revenue to its bottom line over the next year.

For more information, visit: www.level3.com or www.infocrossing.com


Photonics.com
Oct 2005
GLOSSARY
photonics
The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
(i)StructureBroomfieldCommunicationsdealInfocrossingITLevel 3News & Featuresoutsourcingphotonics

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