CenturyLink agreed to buy Level 3 Communications for about $34 billion in cash and stock, creating a more formidable competitor to AT&T in the market to handle heavy internet traffic for businesses.
The acquisition values Level 3 at $66.50 a share, the companies said in a statement Monday. That’s about 42 percent above where the Broomfield, Colo.-based company was trading last week, before reports surfaced of a potential acquisition by CenturyLink, which is based in Monroe, La. The deal includes assumed debt.
Both companies have amassed giant networks to haul internet traffic through deals over the years.
Level 3 is one of the largest providers used by internet services including Netflix and Google to route traffic across the web, operations that would bolster CenturyLink’s core offerings to businesses. The deal also promises to help CenturyLink by giving it access to about $10 billion in tax credits that Level 3 is carrying on its books, Jennifer Fritzsche, an analyst with Wells Fargo Securities LLC, said last week.
