Focus Company: Broadwing Corporation (BWNG) - Buyout
Level 3 to Acquire Broadwing Corporation
BROOMFIELD, Colo., Oct. 17 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that it has signed a definitive agreement to acquire Broadwing Corporation (Nasdaq: BWNG), a publicly held provider of optical network communications services. Under the terms of the agreement, Level 3 will pay $8.18 of cash plus 1.3411 shares of Level 3 common stock for each share of Broadwing common stock outstanding at closing. In total, Level 3 currently expects to pay approximately $744 million of cash and issue approximately 122 million shares.
Broadwing, based in Austin, Texas, delivers data, voice and media solutions to enterprises and service providers over its 19,000 mile intercity fiber network. Approximately half of Broadwing's revenue comes from the wholesale market, with business customers comprising the remaining revenue.
"The acquisition of Broadwing is consistent with both the Level 3 wholesale market strategy as well as our more recent entry into the enterprise market," said James Q. Crowe, chief executive officer of Level 3. "We believe the combination of Level 3 and Broadwing will create value for our investors through the elimination of duplicative network and operating costs, the addition of a solid revenue base, and a further strengthening of our financial position.
General information
| Market | NASDAQ |
| Symbol | BWNG |
| Price | $8.18 |
| Contact: | Broadwing Corp - 7015 Albert Einstein Drive - Columbia, MD 21046 |
| Telephone | (443) 259-4000 |
| Website | www.broadwing.com |
© Bill Mathews - The CHEAP Investor
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