November 2, 2016
CenturyLink and Level 3 Communications, Inc. have announced that their respective board of directors have unanimously approved a definitive merger agreement under which CenturyLink will acquire Level 3 in a cash and stock transaction valued at approximately US$34 billion, including the assumption of debt.
“The digital economy relies on broadband connectivity, and together with Level 3 we will have one of the most robust fiber networks and high-speed data services companies in the world,” said Glen Post, CenturyLink president and CEO.
The transaction increases CenturyLink’s network by 200,000 route miles of fiber, which includes 64,000 route miles in 350 metropolitan areas and 33,000 subsea route miles connecting multiple continents.
Accounting for those served by both companies, CenturyLink’s on-net buildings are expected to increase by nearly 75% to approximately 75,000, including 10,000 buildings in EMEA and Latin America.
Together, CenturyLink’s and Level 3’s revenue will be 76% derived from business customers, and 65% of the combined company’s core revenue will be from strategic services.
“This is a compelling transaction for our customers, shareholders and employees,” said Jeff Storey, president and CEO of Level 3. “In addition to the substantial value delivered to shareholders, the combined company will be uniquely positioned to meet the evolving and global needs of enterprise customers.”