Level 3 To Acquire ICG For $163 Million

Level 3 said Monday that it will acquire ICG Communications for $163 million in a move that will boost its fiber rollout in Colorado and Ohio, where ICG has more than 1,000 customers.

ICG's primary business is the provision of transport, IP, and voice services to wireline and wireless carriers, ISPs and enterprise customers.

Level 3 said it expects ICG will generate $75 to $80 million of annualized revenue and $10 to $15 million of annualized positive cash flow after $10 million in capital expenditures is invested.

"We expect annualized cash flow to improve to approximately $30 to $40 million once we have competed integration, which is expected to begin later this year," said Sunit Patel, Level 3's chief financial officer, in a statement.