Level 3 Communications, continuing its acquisition spree, will buy Broadwing Corp. in a cash and stock deal. Level 3 said it expects to pay approximately $744 million in cash and issue approximately 122 million shares. The stock is worth over $670 million at yesterday’s closing price of $5.55, for a total value of about $1.4 billion.
Broadwing delivers data, voice and media solutions to enterprises and service providers over its 19,000-mile intercity fiber network. Approximately half of Broadwing’s revenue comes from the wholesale market, with business customers comprising the remaining revenue.
Level 3 said it expects to eliminate duplicative networks and reduce operating costs, while expanding its Business Markets Group.
In the past year, Level 3 has purchased WilTel, TelCove, Looking Glass, and now Broadwing.