Telecom infrastructure provider Level 3 Communications will acquire Global Crossing, which provides Internet Protocol-based networks and Ethernet services and runs data centers, in an all-stock deal.
Level 3 will pay about US$3 billion for Global Crossing, but will also assume about $1.1 billion of Global Crossing’s debt, the companies said in a press release. The combined telecom/Internet company will own network facilities in more than 50 countries, and will have combined annual revenues of more than $6 billion.
The acquisition will create an “unparalleled” global communications company, said Jim Crowe, Level 3′s CEO. The combined company will have access to fast-growing international markets, and will have a “balanced mix” of telecom and broadband services, he said during a press briefing.
The benefits of the deal are “clear and powerful,” he added.