Menu
Level 3 buying TW Telecom for $5.7 billion to upgrade metro coverage

Level 3 buying TW Telecom for $5.7 billion to upgrade metro coverage

Customers of both operators will benefit from the combined long-haul and metro networks, companies say

Level 3 Communication is buying TW Telecom for approximately US$5.7 billion [b] in an effort to boost its metropolitan footprint of fixed networks.

The two operators are highly complementary, according to Level 3. The combination of the two companies creates a stronger, more nimble competitor to the incumbents, it said on Monday.

Level 3 said its own customers will benefit from TW Telecom's "deep metropolitan footprint and buildings connected to the network," resulting in faster and more reliable fixed broadband connections in the U.S. Meanwhile, TW Telecom's customers will be able to take advantage of Level 3's back-bone networks and data centers in more than 60 countries as well as global subsea networks, it said.

The two companies have entered into a definitive agreement valued at $40.86 per share of TW Telecom common stock or approximately $7.3 billion, including about $1.6 billion [b] of net debt as of the end of March.

Shareholders will receive $10 cash and 0.7 shares of Level 3 common stock for each share of TW Telecom that is owned at closing.

Integrating two operators with big network assets is never easy. But Level 3 and TW expect to benefit from their close geographic proximity and previous integration experience. Level 3 is based in Broomfield, Colorado, and TW in Littleton, Colorado.

The transaction is expected to close in the fourth quarter.

Send news tips and comments to mikael_ricknas@idg.com

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersTW TelecomLevel 3 CommunicationsMergers and acquisitionsbroadband

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments