After shareholders for both tw telecom and Level 3 granted their approval on Tuesday for Level 3’s deal to buy tw telecom, Level 3 announced Friday morning that the $5.7 billion acquisition was completed.
The combined company now includes Level 3’s global fiber network, which features a strong metro presence in North America, with tw telecom’s network that serves office buildings and businesses across the nation.
In Vertical System Group’s August Mid-2014 U.S. Carrier Ethernet Leaderboard, tw telecom was ranked third while Level 3 was ranked eighth in Ethernet port shares.
“Level 3 is helping customers migrate to the next wave of technology,” said Jeff Storey, president and CEO of Level 3. “We know our customers’ needs are changing, and by bringing together these two great, customer-focused companies, we are taking the next step in the evolution of Level 3 and bringing us closer to realizing our vision of being the trusted connection to the networked world.
Level 3 said the combined company would boost its enterprise revenue in North America from approximately 65 percent to 70 percent of the region’s total revenue while also doubling the company’s sales force.
The fiber networks serve North America, Latin America, EMEA and the Asia-Pacific region, and include more than 200,000 route miles globally, with 33,000 subsea route miles. The network serves approximately 30,000 buildings the United States.
“The combination of tw telecom’s rich metro footprint with Level 3’s global network, positions the company to provide local-to-global business solutions and deliver a world-class customer experience,” Storey said.
Both companies are represented on the new board of directors which includes: chairman James Ellis, Storey, Kevin Chilton, Archie Clemins, Steven Clontz, Irene Esteves (tw telecom board), T. Michael Glenn, Spencer B. Hays (tw telecom board), Michael Mahoney, Kevin Mooney (tw telecom board), Peter Seah Lim Huat and Peter van Oppen. Larissa Herda, who was tw telecom’s most recent CEO, won’t be making the move to Level 3.
The deal was first announced in June.
