Globix Corporation

Globix Corporation is a company that provided internet infrastructure and network services; it went bankrupt following the dot-com bubble, recovered, and was bought by RCN Corporation in 2007.

History

Globix Corporation was founded in 1989 as Bell Technology Group, a value-added reseller of computers; Marc Bell served as CEO from its founding until 2001.[1]

In the mid-1990s the company expanded into Internet products and services[1] and completed an IPO in January 1996.[2]

By June 1998 the company offered "dedicated Internet access, Web Hosting, Co-location, network and systems integration, interactive media development (including 2-D and 3-D animation) and instructor-led corporate training" and changed its name to Globix Corporation.[3]

During the dot-com bubble, Globix bought an eight-story building in New York City to serve as a data center, which was announced at Internet World 2000 by Bell, who cited "tremendous demand for our managed Internet Data Center services".[4] The company already had nearly 300,000 square feet of data center space, and planned four additional centers.[4] The company completed a $600 million bond offering in 2001 to fund further expansion.[1]

As the dot-com bubble burst, in August 2001 the company hired a new CEO[1] and in January 2002, Globix filed for Chapter 11 bankruptcy; its market capitalization had fallen from almost $1 billion in 1999 to $5.87 million.[5] Globix emerged from Chapter 11 bankruptcy in April 2002, with creditors receiving $120 million in notes in exchange for the $600 million in bonds they held.[6] In October 2003 Globix sold its New York City data center to fund operations and retire some of its debt.[4]

In November 2003 Globix acquired Aptegrity Inc., a managed services provider focused on Web-based applications.[7] In July 2004, Globix announced it intended to merge with NEON Communications, Inc., a provider of optical networking to carriers and large companies in the US Northeast and mid-Atlantic, and the deal closed in March 2005.[8][9] For the fiscal year ending September 30, 2004, Globix reported a net loss of $41.4 million and had $95.8 million in debt.[9]

In late 2005 and 2006 Globix restructured and paid down debt by selling off assets, including its New York city headquarters, a UK subsidiary, and its hosting business, the latter of which it sold to Quality Technology Services.[10]

In February 2007 Globix changed its name to NEON Communications Group, Inc.[11]

In June 2007 RCN Corporation announced it intended to acquire NEON and the deal closed in November 2007.[12][13]

References

  1. ^ a b c d Staff, The Wall Street Transcript. September 2, 2002 CEO Interview: Peter Stevenson
  2. ^ Staff, New York Times. January 22, 1996 Equity and Convertible Offerings for This Week
  3. ^ Globix Press Release. June 1, 1998 Bell Technology Group Announces Name Change to Globix Corporation Archived October 30, 2014, at the Wayback Machine
  4. ^ a b c Rich Miller for the CarrierHotels News October 21, 2003 Globix Sells Manhattan Data Center Archived March 3, 2016, at the Wayback Machine
  5. ^ Staff, New York Times. January 15, 2002 Technology Briefing | Internet: Globix Plans To Seek Protection
  6. ^ Globix Press Release. April 10, 2002. Globix Reorganizes To Emerge From Bankruptcy
  7. ^ Globix Press Release. November 5, 2003 Globix Completes Acquisition of Aptegrity
  8. ^ Om Malik for Gigaom July 19, 2004 Globix merges with NEON
  9. ^ a b News wire. Channelpartnersonline.com March 8, 2005. Globix and NEON Communications Merge
  10. ^ Patrick Barnard for Mobility Techzone October 3, 2006 Globix Selling its US Hosting Business to Quality Technology Services for $20
  11. ^ NEON Press Release. February 28, 2007 Globix Corporation Becomes NEON Communications Group, Inc.
  12. ^ News wires. Datacentres.com June 25, 2007 RCN To Acquire NEON Communications Group For Up To $5.25 Per Share
  13. ^ News wire, Channel Partners Online. November 13, 2007. RCN Wraps up NEON Merger