Level 3 Communications Inc., the Colorado-based provider of broadband services, agreed to buy Global Crossing Ltd. in a deal valued at about $1.9 billion.
Level 3, based in Broomfield, will acquire Global Crossing in an all-stock transaction worth $23.04 a share, based on Level 3’s closing stock price on April 8, the companies said in a statement today. The value of the purchase is $3 billion, including the assumption of $1.1 billion in debt, they said.
The combination will create a business with fiber-optic networks on three continents, allowing it to provide local, national and international communications services, the companies said. They would have had combined revenue of $6.26 billion in 2010.
“This is a transformational combination that we believe will deliver significant value to investors, customers and employees,” Jim Crowe, chief executive officer of Level 3, said in a statement.
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