Level 3 Communications To Buy TelCove
Level 3 Communications signed a $1.24 billion deal to acquire TelCove, a privately held Pennsylvania-based telecom company. Level 3 will pay $445 million in cash, $637 million in stock and assume $155.5 million in debt, the telecom outfit said Monday.
“TelCove’s networks in key markets throughout the Eastern United States are complementary with Level 3’s existing infrastructure including the networks we have recently acquired through Progress Telecom and have agreed to acquire from ICG Communications,” said President and Chier Operating Officer Kevin O’Hara. Level 3 said TelCove is expected to generate $380 million to $400 million in standalone revenue in 2006. Level 3, which had revenue of $3.61 billion in 2005, said it expects about $75 million in integration costs related to the purchase. The deal is expected to close in the third quarter.
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