Level 3 closes tw telecom acquisition

Global carrier Level 3 Communications, Inc. (NYSE: LVLT) has completed its acquisition of tw telecom, consumating the deal announced back in June (see "Level 3 offers $7.3 billion for tw telecom").

Global carrier Level 3 Communications, Inc. (NYSE: LVLT) has completed its acquisition of tw telecom, consumating the deal announced back in June (see "Level 3 offers $7.3 billion for tw telecom").

The combined company will provide enterprise, government, and carrier customers around the world with what it describes as "one of the most comprehensive product portfolios in the industry, supported by its global network and deep metro footprint across North America."

The combination of tw telecom's metro footprint with Level 3's global network positions the company to provide local-to-global business services and deliver a world-class customer experience, Level 3 says.

With triple the number of on-net buildings, Level 3 says it can now enable a higher quality and more reliable on-net experience for its customers doing business in North America or expanding into North America from regions such as Europe, Middle East, and Africa (EMEA) and Latin America.

"Level 3 is helping customers migrate to the next wave of technology," said Jeff Storey, president and CEO of Level 3. "We know our customers' needs are changing, and by bringing together these two great, customer-focused companies, we are taking the next step in the evolution of Level 3 and bringing us closer to realizing our vision of being the trusted connection to the networked world."

The new Level 3's services reach more than 60 countries across six continents, with more than 50,000 customers worldwide. The company’s assets include more than 200,000 route miles globally, including 33,000 submarine network route miles, approximately 30,000 buildings connected to the network in the United States, and more than 13,000 employees globally.

The acquisition boosts Level 3's enterprise revenue in North America from approximately 65% to 70% of the region's total revenue, it asserts.

Under the financial terms of the deal, tw telecom stockholders receive $10 of cash and 0.7 shares of Level 3 common stock for each share of tw telecom common stock owned. tw telecom's common stock ceased trading on NASDAQ as of market close on October 31, 2014.

The company's new board of directors includes members of tw telecom and Level 3's boards, with Irene M. Esteves, Spencer B. Hays, and Kevin W. Mooney joining from tw telecom. James O. Ellis, Jr. remains as the chairman of the board.

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