View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
April 12, 2011

Level 3 Communications to buy Global Crossing

Combined network will serve customers in over 70 countries

By CBR Staff Writer

Level 3 Communications and Global Crossing have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a tax-free, stock-for-stock transaction.

The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities, said the company.

The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries.

The transaction will create a company with pro forma combined 2010 revenues of $6.26bn and pro forma combined 2010 Adjusted EBITDA of $1.27bn before synergies and $1.57bn after expected synergies, the company said.

Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing.

Based on Level 3’s closing stock price on 8 April 2011, the transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0bn, including the assumption of approximately $1.1bn of net debt as of 31 December 2010.

Content from our partners
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
When it comes to AI, remember not every problem is a nail

Level 3 chief executive officer Jim Crowe said, "This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing."

"The complementary fit between the two companies’ networks, service portfolios and customers is compelling."

Global Crossing chief executive officer John Legere said, "Each of our companies has a reputation for being nimble and flexible in meeting customers’ communications needs, and we expect that to continue – with the added benefit of offering customers significantly greater reach, products and services."

The transaction is expected to close before the end of the year, pending regulatory and shareholder approval.

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 Progressive Media Investments 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.