Level 3 To Acquire Global Crossing For $3 Billion In Stock
Level 3 Communications has acquired IP solutions and networking provider Global Crossing. The transaction is valued at $23.04 per share, or approximately $3 billion, including the assumption of approximately $1.1 billion of net debt from Global Crossing. The deal was an all-stock transaction.
Global Crossing’s networking platform offers businesses VPN, leased lines, audio and video conferencing, long distance telephone, managed services, dialup, colocation and VoIP services. Global Crossing’s network is currently being used by 40 percent of Fortune 500 companies, as well as 700 carriers, mobile operators and ISPs.
The two companies will create a giant in the networking space. The combined company’s platform will be anchored by fiber optic networks on three continents, and will support clients in 50 countries (including Netflix). The revenue from both companies in 2010 was $6.26 billion.
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