Level 3 To Finalize Global Crossing Deal This Week3:10 PM EST Mon. Oct. 03, 2011
With regulatory hurdles cleared, Level 3 Communications expects to wrap up its acquisition of Global Crossing Ltd as early as this week.
The Justice Department and the FCC approved the deal late last week, Bloomfield, Colo.-based Level 3 said in a statement Friday. The approval came after several months of investigation by the DOJ over antitrust and national security concerns.
Tier 1 service provider and Level 3 competitor, XO Communications, had filed comments with the FCC opposing the acquisition in July, saying the merger would create a “global colossus” that would increase prices while decreasing quality.
Level 3 first announced it would acquire Florham, N.J.-based Global Crossing in April, in an all-stock and debt assumption deal valued at $3 billion. Shareholders of both companies voted to approve the merger last month.
The combination of Level 3 and Global Crossing will create a global networking powerhouse with fiber optic networks in North America, Europe, Latin America and Asia, capable of reaching end users in over 70 countries.
Once fully integrated, the merged companies will offer a vast portfolio of IP and data solutions, content delivery, data center, collocation, and voice services, as well as managed services, collaboration and inter-continental VPN capabilities geared toward the global enterprise market.