Level 3 buying TW Telecom for $5.7 billion to upgrade metro coverage

Customers of both operators will benefit from the combined long-haul and metro networks, companies say

Level 3 Communication is buying TW Telecom for approximately US$5.7 billion [b] in an effort to boost its metropolitan footprint of fixed networks.

The two operators are highly complementary, according to Level 3. The combination of the two companies creates a stronger, more nimble competitor to the incumbents, it said on Monday.

Level 3 said its own customers will benefit from TW Telecom's "deep metropolitan footprint and buildings connected to the network," resulting in faster and more reliable fixed broadband connections in the U.S. Meanwhile, TW Telecom's customers will be able to take advantage of Level 3's back-bone networks and data centers in more than 60 countries as well as global subsea networks, it said.

The two companies have entered into a definitive agreement valued at $40.86 per share of TW Telecom common stock or approximately $7.3 billion, including about $1.6 billion [b] of net debt as of the end of March.

Shareholders will receive $10 cash and 0.7 shares of Level 3 common stock for each share of TW Telecom that is owned at closing.

Integrating two operators with big network assets is never easy. But Level 3 and TW expect to benefit from their close geographic proximity and previous integration experience. Level 3 is based in Broomfield, Colorado, and TW in Littleton, Colorado.

The transaction is expected to close in the fourth quarter.

Send news tips and comments to mikael_ricknas@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersTW TelecomLevel 3 CommunicationsMergers and acquisitionsbroadband

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?