Level 3 to Acquire Global Crossing in Stock Deal

From PC World: Telecom infrastructure provider Level 3 Communications will acquire Global Crossing, which provides Internet Protocol-based networks and Ethernet services and runs data centers, in an all-stock deal.

Level 3 will pay about US$3 billion for Global Crossing, but will also assume about $1.1 billion of Global Crossing's debt, the companies said in a press release. The combined telecom/Internet company will own network facilities in more than 50 countries, and will have combined annual revenues of more than $6 billion.

The acquisition will create an "unparalleled" global communications company, said Jim Crowe, Level 3's CEO. The combined company will have access to fast-growing international markets, and will have a "balanced mix" of telecom and broadband services, he said during a press briefing.

The benefits of the deal are "clear and powerful," he added. The company's IP networks will deliver services to 70 countries and will be able to achieve cost-savings of about $300 million per year, company officials said.

The combined company will offer "extensive" services focused on large customers, including transport, IP and data solutions, content delivery, data center, colocation and voice services, officials said. Global Crossing will bring several additions to Level 3's service offerings, including managed services, collaboration services and inter-continental virtual private networking capability, the companies said.

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