Level 3 spends $5.7bn on US network
Networking specialist Level 3 Communications has agreed to make an acquisition move on US-focused enterprise networking firm tw telecom for $5.7bn. The deal values tw at approximately $7.3bn, including the assumption of approximately $1.6bn of net debt.
Level 3 Is Spending $5.7Bn On The Deal
Level 3 said its customers will benefit from tw telecom’s deep metropolitan footprint and buildings connected to the network, enabling a higher quality and more reliable experience for customers doing business in North America. Meanwhile tw telecom’s customers will benefit from Level 3’s extensive global footprint, with owned network and data centers in more than 60 countries and significant global subsea networks, the firm said.
In addition, the combination is expected to provide $240m of annualised synergies, with $200m from adjusted EBITDA savings and $40m from capital expense savings.
“The transaction with Level 3 provides the combined company with an enhanced competitive position, our customers with a broader product offering and better opportunities for our employees as part of a larger company in an industry where scale is important to compete effectively against larger competitors,” said Larissa Herda, chairman and CEO of tw telecom.
