Dynegy Inc. (NYSE: DYN) announced the completion of its acquisition of iaxis Limited, a privately held, London- based communications company. The companies originally announced the signing of a letter of intent on Nov. 6, 2000.
In conjunction with this transaction, Dynegy established Dynegy Europe Communications (DEC), a new subsidiary of Dynegy Global Communications (DGC), that will implement the company's goal to enter the broadband marketing and trading arena in Europe.
DEC owns an 8,750-route-mile (14,000-kilometer) fiber optic network, and optical equipment and technology deployed at strategically positioned collocation and hub sites throughout Europe. The network reaches 22 cities in seven countries, including the UK, Germany, France, Switzerland, Italy, Holland and Belgium, and connects to the United States via a 24 OC3 (3720 MB/s) transatlantic connection between New York and London.
Under terms of the purchase agreement, DEC purchased all of the shares of iaxis Limited for nominal consideration. In addition, DEC agreed to contribute $40 million to iaxis Limited for distribution to existing creditors in final settlement of the company's unsecured debts and other obligations. As previously announced, Dynegy also expects to incur approximately $160 million related to the network build-out and payment of certain iaxis Limited pre-existing liabilities and other obligations.
SEMA Limited acted as financial advisor to Dynegy on this transaction.
Dynegy Inc. is a provider of energy and communication solutions to customers in North America, the United Kingdom and Continental Europe. For more information, visit www.dynegy.com.