CenturyLink has confirmed that it will be acquiring Level 3 in a cash and stock transaction valued at approximately $34 billion, including the assumption of debt.
Upon the closing of the transaction, CenturyLink shareholders will own approximately 51 percent and Level 3 shareholders will own approximately 49 percent of the combined company.
The deal would make the combined company the second-largest provider of communications to businesses in the United States, after AT&T.
It will have the ability to offer CenturyLink's large customer base the benefits of Level 3's global footprint with a combined presence in more than 60 countries. The new company will also be poised to further invest in the reach of its broadband infrastructure for small businesses and consumers.
According to MarketWatch, shares of Level 3 surged by 3.9% in pre-market trade on Monday, after the communications services company confirmed the deal.
Glen Post, President & CEO, CenturyLink
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.
Jeff Storey, President & CEO, 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.
