Globix Corporation
| Company type | Public |
|---|---|
| Industry | Internet infrastructure, network services |
| Founded | 1989 |
| Founder | Marc Bell |
| Defunct | 2007 |
| Fate | Acquired by RCN Corporation |
| Headquarters | New York City , United States |
Key people | Marc Bell (CEO until 2001) |
| Products | Dedicated Internet access, web hosting, co-location, network and systems integration, interactive media creation, corporate training, managed Internet Data Center solutions |
Globix Corporation was a provider of internet infrastructure and network services that encountered bankruptcy following the dot-com crash, later recovering and ultimately being acquired by RCN Corporation in 2007.
History
Established in 1989 under the name Bell Technology Group by Marc Bell, who held the CEO position until 2001, the firm initially operated as a value-added computer reseller. During the mid-1990s, it broadened its scope to include Internet-related products and services, culminating in an initial public offering in January 1996.
By June 1998, the company had diversified its offerings to include dedicated Internet access, web hosting, co-location, network and systems integration, interactive media creation, and corporate training, which led to its rebranding as Globix Corporation.
Amid the dot-com boom, Globix made significant investments in data center infrastructure, notably acquiring an eight-story building in New York City to support the rising demand for managed Internet Data Center solutions. The company managed close to 300,000 square feet of data center facilities and had plans for four more centers. In 2001, it secured $600 million through a bond issuance aimed at funding further expansion.
Following the market downturn, Globix underwent leadership changes with a new CEO appointed in August 2001 and subsequently filed for Chapter 11 bankruptcy protection in January 2002; its market value had dropped sharply from almost $1 billion in 1999 to just $5.87 million. The company reemerged from bankruptcy in April 2002 by converting $600 million of bonds into $120 million of notes. To support ongoing operations and reduce liabilities, it divested its New York City data center in October 2003.
In November 2003, Globix expanded by acquiring Aptegrity Inc., a managed services firm focused on web-based applications. By July 2004, it announced a merger with NEON Communications, which provided optical networking services primarily to carriers and large enterprises in the US Northeast and mid-Atlantic regions; this merger was finalized in March 2005. For the fiscal year 2004, Globix posted a net loss amounting to $41.4 million and carried $95.8 million in debt.
Between late 2005 and 2006, the company undertook restructuring efforts that involved selling various assets such as its New York headquarters, a UK subsidiary, and its hosting division (which was sold to Quality Technology Services). In February 2007, it adopted the name NEON Communications Group, Inc.
In June 2007, RCN Corporation announced its intention to acquire NEON Communications Group; this transaction was completed by November 2007.