Level 3 Completes Broadwing Acquisition

Level 3 Communications Inc. has completed its $1.4 billion acquisition of Broadwing Corp.

Level 3 will pay consideration to Broadwing shareholders of $8.18 in cash plus 1.3411 shares of Level 3 common stock for each share of Broadwing common stock outstanding at closing. Level 3 will pay approximately $744 million of cash and issue approximately 122 million shares of common stock.

The sale was announced Oct. 16.

"The acquisition of Broadwing benefits Level 3 in two distinct areas," said Kevin O'Hara, president and COO of Level 3. "The integration of the Broadwing backbone presents significant synergy opportunities, and the expansion of the customer base provides strategic growth opportunities for us moving forward."

Broadwing, based in Austin, Texas, delivers data, voice and media platforms to enterprises and service providers over its 19,000-mile fiber network. Approximately half of Broadwing's revenue comes from the wholesale market, with business customers comprising the remaining revenue.

Broadwing Corp. www.broadwing.com  

Level 3 Communications Inc. www.level3.com