Level 3 gobbles rival TW Telecom in $5.7bn deal (that's 5 Instagrams)
World's biggest telco: 'We wanna be stronger, more nimble'
Internet backbone provider Level 3 has bought its competitor TW Telecom in a cash and stock mega-deal valued at $40.86 per share.
The planned $5.7bn merger, if waved through by US regulators and shareholders, would further consolidate the telco market stateside.
"We believe this is a financially compelling and very strategic acquisition for Level 3 that will enhance our ability to continue to gain market share," the company's boss Jeff Storey said in a canned statement.
He added that the strategy would allow Colorado-headquartered Level 3 to flex its biceps in the enterprise, government and carrier market – and said that Colorado-based TW Telecom's local ops and assets in North America would slot in nicely with that plan.
"TW Telecom's business model is directly aligned with Level 3's initiatives for growth, which include building managed solutions to meet customer needs through an advanced IP/optical network," he said.
The deal is not expected to close until late this year. ®