CenturyLink has planned to acquire Level 3 Communications in a cash and stock transaction valued at approximately $34 billion. The combined company would have the ability to offer CenturyLink‘s larger enterprise customer base the benefits of Level 3‘s global footprint with a combined presence in more than 60 countries.
The combined company will deliver comprehensive services and solutions over an owned network that connects more than 350 metropolitan areas with approximately 75,000 on-net buildings.
The combined company will be headquartered in Monroe, Louisiana and will maintain a significant presence in Colorado and the Denver metropolitan area. The companies anticipate closing the transaction by the end of third quarter 2017. The transaction is subject to regulatory approvals.
“The digital economy relies on broadband connectivity, and together with Level 3 we will have one of the most robust fiber network and high-speed data services companies in the world,” said Glen Post, Chief Executive Officer (CEO) and President of CenturyLink. “CenturyLink shareholders will benefit from the significant synergies and financial flexibility provided by the combined company’s revenue growth and strong cash flow. For employees, this combination will bring together two highly customer-focused organizations and provide employees growth and advancement opportunities the companies could not offer separately.”
Management and Board
After the close of the transaction, Glen Post will continue to serve as Chief Executive Officer and President and Sunit Patel, Executive Vice President and Chief Financial Officer of Level 3, will serve as Chief Financial Officer of the combined company.
The Chairman of CenturyLink’s Board at the time of the closing of the transaction will continue to serve as Chairman of the combined company. CenturyLink has agreed to appoint four Level 3 Board members at closing, one of whom will be a representative of STT Crossing (a wholly owned subsidiary of ST Telemedia).