Level 3 to Buy TW Telecom for About $5.6 Billion

MoreMoney

Level 3 Communications Inc. said Monday that it has agreed to buy TW Telecom in a deal worth about $5.6 billion.

The Internet and telecommunications company says the acquisition will increase its local operations. Level 3, which is based in Broomfield, Colorado, owns network and data centers around the world. Littleton, Colorado-based TW Telecom provides data and Internet and other services to businesses in the U.S.

Level 3 will pay $40.86 for each outstanding share of TW Telecom. As of April 30, TW Telecom had 137.9 million outstanding shares. Level 3 said the total deal will be worth $7.3 billion, which includes the amount of debt it will take on from TW Telecom.

TW Telecom shareholders will receive $10 in cash and 0.7 shares of Level 3 for each share they own. The deal is expected to close in the fourth quarter.

Shares of TW Telecom rose $2.56, or 7 percent, to $38.90 in morning trading. Level Three shares fell $2.49, or 5.7 percent, to $41.60.

Associated Press

Tagged:
About the Author

News content on AppleMagazine.com is produced by our editorial team and complements more in-depth editorials which youโ€™ll find as part of our weekly publication. AppleMagazine.com provides a comprehensive daily reading experience, offering a wide view of the consumer technology landscape to ensure you're always in the know. Check back every weekday for more.

Editorial Team | Masthead โ€“ AppleMagazine Digital Publication