View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
March 17, 2017

CenturyLink & Level 3 get the go ahead for combined merger

Shareholders for CenturyLink and Level 3 have their merger proposals approved.

By Hannah Williams

Shareholders of CenturyLink and Level 3 Communications have approved the companies’ proposals towards a joint merger.

CenturyLink, which delivers communications and data services and Level 3 Communications, a global communications provider, both revealed talks to form a joint merger in the business telecoms market in October last year.

In October 2016, the combined merger was valued at approximately $34 billion and is to increase CenturyLink’s network by 200,000 route miles of fibre.

Following this, a meeting between CenturyLink’s shareholders saw approximately 96.3 percent of votes casted to be in support of the proposal to issue CenturyLink’s common stock to Level 3 stockholders.

Meanwhile, another meeting between Level 3’s stockholders saw over 98.8 percent of the votes were also in favour of approving the merger agreement.

Read more: CenturyLink and Level 3 eye merger to create $35 billion company 

CenturyLink & Level 3The companies also recently received approvals in Georgia and West Virginia, as well as clearances in Connecticut, Indiana and Louisiana. It is expected that they will receive the remaining state, federal and international approvals to complete the merger by the end of September 2017.

Glen F. Post, CEO and President, CenturyLink said: “The combination of CenturyLink and Level 3 will significantly improve our global network capabilities, creating a company with one of the most robust fibre networks in the world.

Content from our partners
Sherif Tawfik: The Middle East and Africa are ready to lead on the climate
What to look for in a modern ERP system
How tech leaders can keep energy costs down and meet efficiency goals

“This expanded network should allow us to bring substantial operational and service benefits to our enterprise customers, as well as an enhanced customer experience.”

Once the deal has been closed, Level 3 stockholders will receive $26.50 per share in cash and 1.4286 shares of CenturyLink stock for each Level 3 share they own.

CenturyLink shareholders will take hold of approximately 51 percent of the company, while Level 3 will own approximately 49 percent.

Both companies which are currently based in the US will have the combined company headquartered in Monroe, and will also gain key operational presence in Colorado and the metropolitan area of Denver.

 

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU