Mercator to acquire Global Internetworking

Mercator Partners Acquisition Corp. lived up to its name this week by announcing its intent to acquire Global Internetworking, a telecommunications service integrator based in McLean, Va., and U.K.-based European Telecommunications and Technology.

Calling it a platform acquisition, Mercator will pay approximately $63.1 million for both companies, which it call virtual network operators because they don’t own facilities, but rather leverage the infrastructure of multiple, asset-based carriers to create customized solutions for large enterprises, governmental organizations and other carriers.

Michael Keenan, co-founder and CEO of Global Internetworking, will lead the combined company as CEO. Christopher Britton, currently CEO of ETT, will serve as executive vice president and head of Europe, Middle East and Asia operations. Company headquarters will be in McLean with additional locations in London, New York, Paris, New Delhi, Dusseldorf, and Miami. Mercator Partners intends to change its name upon the merger of ETT and Global Internetworking to Global Telecom and Technology Inc., or GTT. It will submit an application to list the securities of GTT on the Nasdaq National Market.

Together the companies have more than 200 customers, including Airbus, Bloomberg, Citigroup, Comsat International, Deloitte, Equant, Ford, Tandberg Television, WPP and a number of U.S. government agencies. In 2005, the combined company had proforma revenues of approximately $50 million.

H. Brian Thompson, Chairman of Mercator Partners, also will be executive chairman of the company, joined by Nextel Founder Morgan O'Brien.

The combined companies have more than 100 carrier partnerships in 50 countries and will become a leader in what Thompson calls the rapidly growing VNO telecommunications sector.

Keenan said in a statement that there is burgeoning customer demand for carrier-independent and technology-neutral solutions from a single, customer-focused provider and that this combination creates a global telecommunications platform with the resources, capabilities, and technology to deliver cost-effective 'best of breed' solutions and support to customers on a global basis.

The total acquisition purchase price of approximately $63.1 million is comprised of approximately $51 million in cash and $12.1 million in notes and securities, valuing the securities at their last sale price as of May 23, 2006. Current shareholders will own approximately 90% of the more than 13 million shares of common stock.