Level 3 To Acquire TelCove
Internet infrastructure power Level 3 Communications said Monday it plans to buy telecommunications company TelCove for about $1.2 billion in cash and stock.
May 1, 2006
![Network Computing logo Network Computing logo](https://eu-images.contentstack.com/v3/assets/bltde8121fc52c5c8f3/blt3f3d0318f746b1c2/65a530e4187606040a1d8b8c/placeholder.png?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
Internet infrastructure power Level 3 Communications said Monday it plans to buy telecommunications company TelCove for about $1.2 billion in cash and stock.
Pittsburgh-based TelCove, a private company, provides metropolitan and regional Internet access and voice services and runs a network serving 70 U.S. markets. The deal, expected to close in the third quarter, comprises $637 million in Level 3 shares, $445 million in cash and $155.5 million in debt assumption by Level 3.
"The acquisition of TelCove increases our ability to provide end-to-end bandwidth services to our customers," Level 3 CEO James Crowe said in a statement.
After TelCove is integrated into Level 3, plans call for TelCove's metropolitan and regional networks to tie Level 3's backbone directly to traffic aggregation points.
Broomfield, Colo.-based Level 3 made some unwelcome headlines last fall when a dispute with Cogent Networks caused Internet service disruptions to customers.Aside from its infrastructure business, Level 3 plays in information services through its Software Spectrum subsidiary, based in Plano, Texas, and in fiber-optic and satellite video delivery through Vyvx.
You May Also Like
Maximizing cloud potential: Building and operating an effective Cloud Center of Excellence (CCoE)
September 10, 2024Radical Automation of ITSM
September 19, 2024Maximizing Manufacturing Efficiency with Real-Time Production Monitoring
September 25, 2024