CenturyLink completes acquisition of Level 3
CenturyLink, the second largest US communications provider to global enterprise customers, has completed its acquisition of Level 3 Communications. The combination of CenturyLink and Level 3 creates a global network services company capable of providing customers a wide range of high quality technology solutions over a secure and reliable fibre-rich network.
The combined company, with estimated pro forma revenue of $24 billion for the trailing twelve months ended 30 June 2017 (excluding revenue related to CenturyLink’s 1 May 2017, colocation business sale and including estimated intercompany eliminations and purchase accounting adjustments), anticipates that approximately 75% of its core revenue will come from business customers and nearly two-thirds of its core revenue will come from strategic services. CenturyLink’s network now connects more than 350 metropolitan areas with more than 100,000 fibre-enabled, on-net buildings, including 10,000 buildings in EMEA and Latin America.
“CenturyLink is now poised to offer an expanded, robust portfolio of communications solutions focused on our customers’ networking and IT services needs,” said Glen F. Post III, CenturyLink’s chief executive officer. “Our customers, from individual consumers to global enterprises, will benefit from our expanded, innovative network solutions, our complementary managed services and our highly talented workforce.”
“Our goal is to be the world’s best networking provider and we have the ability to achieve this as one company,” said Jeff Storey, CenturyLink’s president and chief operating officer. “CenturyLink is focused on providing a differentiated experience for our customers, while driving profitable growth and increasing free cash flow per share. Our scale and experience will enable us to deliver on behalf of our customers, employees and our shareholders.”
Holders of Level 3 common stock as of immediately prior to closing are entitled to receive $26.50 per share in cash (without interest) and 1.4286 shares of CenturyLink stock for each Level 3 share they owned. CenturyLink shareholders now own approximately 51 percent and former Level 3 stockholders now own approximately 49 percent of the combined company. CenturyLink remains headquartered in Monroe, La., with a key operational presence in Colorado and the Denver metropolitan area.