-- Combined Enterprise Value of $27
Billion Creates a Stronger Competitor to Deliver Significant
Customer Benefits
BROOMFIELD, Colorado,
Oct. 31, 2014 /PRNewswire/ -- Level 3
Communications, Inc. (NYSE: LVLT) announced it completed its
acquisition of tw telecom. The transaction further positions the
company as a global leader in the rapidly evolving business
communications market.
Photo - http://photos.prnewswire.com/prnh/20141031/155755
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The combined company provides enterprise, government and carrier
customers around the world with one of the most comprehensive
product portfolios in the industry, supported by its global network
and deep metro footprint across North
America.
"Level 3 is helping customers migrate to the next wave of
technology," said Jeff Storey,
president and CEO of Level 3. "We know our customers' needs are
changing, and by bringing together these two great,
customer-focused companies, we are taking the next step in the
evolution of Level 3 and bringing us closer to realizing our vision
of being the trusted connection to the networked world.
"The combination of tw telecom's rich metro footprint with Level
3's global network, positions the company to provide
local-to-global business solutions and deliver a world-class
customer experience," Storey continued.
Powerful Competitor in the Enterprise Market
The combination of Level 3 and tw telecom:
- Enables a higher quality and more reliable on-net experience
for customers doing business in North
America or expanding into North
America from regions such as Europe, Middle
East and Africa (EMEA) and
Latin America, including access to
triple the number of on-net buildings.
- Provides access to the combined product portfolio, targeted at
helping companies manage their growth in an efficient and secure
manner.
- Addresses the ever-changing threat landscape — both companies
built their networks with security and flexibility in mind.
- Boosts Level 3's enterprise revenue in North America from approximately 65 percent to
70 percent of the region's total revenue.
- Doubles the company's salesforce in North America to provide excellent customer
service and reach.
Transaction Details
tw telecom stockholders are receiving $10 of cash and 0.7 shares of Level 3 common
stock for each share of tw telecom common stock owned. tw telecom's
common stock will cease trading on NASDAQ as of market close on
Oct. 31, 2014, and will no longer be
listed on NASDAQ.
Combined Company Facts
- Fiber networks with reach to North
America, Latin America,
EMEA and the Asia-Pacific region.
- More than 200,000 route miles globally, including extensive
undersea facilities (33,000 subsea route miles)
- Services reaching more than 60 countries across six
continents.
- Approximately 30,000 buildings connected to the network in
the United States.
- More than 50,000 customers worldwide.
- More than 13,000 employees globally.
Both Companies Represented on Board of
Directors
The company's board of directors includes members of tw telecom
and Level 3's boards, including James O.
Ellis, Jr. (Chairman), Jeff K.
Storey, Kevin P. Chilton,
Archie R. Clemins, Steven T. Clontz, Irene
M. Esteves (tw telecom board), T.
Michael Glenn, Spencer B.
Hays (tw telecom board), Michael J.
Mahoney, Kevin W. Mooney (tw
telecom board), Peter Seah Lim Huat
and Peter van Oppen.
Level 3 Earnings
Level 3 will report third quarter 2014 results on Wednesday, Nov. 5, 2014, and the company plans to
discuss third quarter 2014 earnings results for both Level 3 and tw
telecom during the call. The call will be broadcast live on Level
3's Investor Relations website at http://investors.level3.com at
10 a.m. ET on Nov. 5.
Additional information regarding the third quarter 2014 results,
including the presentation management will review on the conference
call, will be available on Level 3's Investor Relations website.
Investors unable to join the call via the Web can access the call
at +1 877-283-5145 (U.S. Domestic) or +1 312-281-1200
(International). Questions should be sent to
investor.relations@level3.com.
The call will be archived and available on Level 3's Investor
Relations website or can be accessed as an audio replay starting at
2 p.m. ET on Nov 5 until 1 p.m.
ET on Jan. 3, 2015. The replay
can be accessed by dialing +1 800-633-8284 (U.S. Domestic) or +1
402-977-9140 (International), conference code 21738057.
About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) is a Fortune 500
company that provides local, national and global communications
services to enterprise, government and carrier customers. Level 3's
comprehensive portfolio of secure, managed solutions includes fiber
and infrastructure solutions; IP-based voice and data
communications; wide-area Ethernet services; video and content
distribution; data center and cloud-based solutions. Level 3 serves
customers in more than 500 markets in over 60 countries across a
global services platform anchored by owned fiber networks on three
continents and connected by extensive undersea facilities. For more
information, please visit level3.mediaroom.com or get to know us on
Twitter, Facebook and LinkedIn.
© Level 3 Communications, LLC. All Rights Reserved. Level 3,
Level 3 Communications, Level (3) and the Level 3 Logo are either
registered service marks or service marks of Level 3
Communications, LLC and/or one of its Affiliates in the United States and elsewhere. Any other
service names, product names, company names or logos included
herein are the trademarks or service marks of their respective
owners. Level 3 services are provided by subsidiaries of Level 3
Communications, Inc.
Forward-Looking Statement
Some statements made in this press release are
forward-looking in nature and are based on management's current
expectations or beliefs. These forward-looking statements are not a
guarantee of performance and are subject to a number of
uncertainties and other factors, many of which are outside Level
3's control, which could cause actual events to differ materially
from those expressed or implied by the statements. Important
factors that could prevent Level 3 from achieving its stated goals
include, but are not limited to, the company's ability to:
successfully integrate the tw telecom acquisition; manage risks
associated with continued uncertainty in the global economy;
increase revenue from its services to realize its targets for
financial and operating performance; maintain and increase traffic
on its network; develop and maintain effective business support
systems; manage system and network failures or disruptions; avert
the breach of its network and computer system security measures;
develop new services that meet customer demands and generate
acceptable margins; manage the future expansion or adaptation of
its network to remain competitive; defend intellectual property and
proprietary rights; manage continued or accelerated decreases in
market pricing for communications services; obtain capacity for its
network from other providers and interconnect its network with
other networks on favorable terms; attract and retain qualified
management and other personnel; successfully integrate future
acquisitions; effectively manage political, legal, regulatory,
foreign currency and other risks it is exposed to due to its
substantial international operations; mitigate its exposure to
contingent liabilities; and meet all of the terms and conditions of
its debt obligations. Additional information concerning these and
other important factors can be found within Level 3's filings with
the Securities and Exchange Commission. Statements in this press
release should be evaluated in light of these important factors.
Level 3 is under no obligation to, and expressly disclaims any such
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contact
Information
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Media:
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Investors:
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Francie
Dudrey
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Mark
Stoutenberg
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+1
720-888-5434
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+1
720-888-2518
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francie.dudrey@level3.com
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mark.stoutenberg@level3.com
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