CenturyLink to buy Level 3 Communications for $19bn cash and stock deal
Telecoms company CenturyLink is to buy Level 3 communications in a cash and stock deal to expand their fiber-optic network.
Shares in Level 3, which provides internet services to Google and Netflix, were up around five per cent in pre-market trading, while CenturyLink's were down 11 per cent on the back of poor results last week.
CenturyLink, a local phone service provider, is set to offer $26.50 in cash and 1.4286 CenturyLink share for each share of Level 3 – worth $19bn (£15.6bn) or $34bn including debt (£28bn).
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The deal will increase CenturyLink's network by 200,000 miles and provide more internet and telephone offerings. Both companies seek more bandwidth and faster capabilities to expand their businesses.
The finalised deal is expected to close by the third quarter of next year, and the new combined company will be based in Monroe, LA.
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"Together with Level 3, we will have one of the most robust fiber network and high-speed data services companies in the world," CenturyLink chief executive Glen Post said in a statement.