Monday June 16, 2014 0 comments
BROOMFIELD/LITTLETON - Level 3 Communications Inc. (NYSE: LVLT) and tw telecom (NASDAQ: TWTC) today announced they have entered into a definitive agreement in which Level 3 will acquire tw telecom in a stock-and-cash transaction valued at $40.86 per share based on a June 13 market close.
Under the terms of the agreement, tw telecom stockholders will receive $10 cash and 0.7 shares of Level 3 common stock for each share of tw telecom common stock owned at closing.
The companies said the combination leverages their highly complimentary strengths to create a more nimble, stronger customer-oriented company to meet increasingly complex local, national and global communications needs.
"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," said Jeff Storey, Level 3 president and CEO.
"The transaction further solidifies Level 3's position as a premier global communications provider to the enterprise, government and carrier market, combining tw telecom's extensive local operations and assets in North America with Level 3's global assets and capabilities."
"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, tw telecom chair and CEO.
Sunit Patel, Level 3 executive VP and CFO, said the combination is expected to provide $240 million in annualized synergies, with $200 million from adjusted EBITDA savings and $40 million in capital expense savings.