OCTOBER 30, 2009 -- Pacific Crossing Ltd., operator of the trans-Pacific undersea cable network PC-1, announced that the acquisition of 100% of its shares by NTT Communications Corp. (NTT Com), was successfully completed on Oct. 23, 2009.

It was reported that NTT paid slightly more than JPY10 billion (US$105 million) to acquire 100% of Pacific Crossing, significantly higher than the US$80 million-US$90 million it had bid when the talks were first reported in March 2009.

With the completion of the deal, NTT Com will control the PC-1 trans-pacific network. By combining PC-1 capacity with NTT Com's domestic and international network, NTT Com can offer customers in both the enterprise and carrier markets high-quality network services between Asia, Japan, and the United States.

NTT Com will retain the Pacific Crossing management team and Pacific Crossing will continue as a business within the NTT Com group, selling network capacity in the wholesale carrier marketplace. Pacific Crossing's customers will see an immediate extension of network reach beyond PC-1 with extended domestic capability in Japan and the U.S. as well as the ability to leverage NTT Com's international network to offer turnkey solutions for Asia to U.S. connectivity.

"We are extremely excited about what the future holds for Pacific Crossing and our existing and future customers now that we are part of NTT Communications," says Pacific Crossing's president and chief executive officer Mark Simpson. "The majority of traffic between Asia and the U.S. transits through Japan and this will continue to be the case. With so much content being delivered between Asia and the U.S., and with Japan as the primary interconnection point, NTT Com's huge Japan domestic and international network reach will allow our transpacific customers unparalleled access to all of Asia.

The Blackstone Group L.P. acted as the exclusive financial advisor to Pacific Crossing on the transaction, and Latham & Watkins LLP served as Pacific Crossing’s legal advisor. Houlihan Lokey acted as the financial advisor to NTT Com and Squire, Sanders & Dempsey LLP served as NTT Com’s legal advisor.