Two wonderful companies are going to become one big awesome company. Colorado-based Level 3 Communications, Inc. and tw telecom, also based in CO, announced that they have entered into a definitive agreement, intended to qualify as a tax-free reorganization, whereby Level 3 will acquire tw telecom in a stock-and-cash transaction valued at $40.86 per share based on market close as of June 13, 2014.
From their joint press release:
"The combination leverages the highly complementary strengths of the two companies to create a stronger, more nimble, customer service-oriented competitor to meet customers’ increasingly complex local, national and global communications needs."
I'm an agent in good standing with both companies. Have been for years. I have clients with services from both companies. For my small business clients, tw telecom offers better customer service. While Level 3 is a strong, good company, they are known for showing up and doing their job, no person-to-person hand-holding, no add-on services. For this reason, I hope the acquisition generates a gigantic tw telecom and not a faceless Level 3.
tw telecom CEO says the following in the press release:
“The transaction with Level 3 provides the combined company with an enhanced competitive position, our customers with a broader product offering and better opportunities for our employees as part of a larger company in an industry where scale is important to compete effectively against larger competitors,” said Larissa Herda, chairman and CEO of tw telecom."
The press release goes on to reassure business partners and customers, saying that "the companies expect to benefit from their close geographic proximity, previous integration experience of both companies and tw telecom’s fully integrated operating platform."
Also from the press release:
"Benefits to Customers of the Transaction
- Level 3’s global customers will benefit from tw telecom’s deep metropolitan footprint and buildings connected to the network, enabling a higher quality and more reliable on-net experience for customers doing business in North America.
- tw telecom’s customers will benefit from Level 3’s extensive local-to-global footprint, with owned network and data centers in more than 60 countries and significant global subsea networks.
- Existing and prospective customers of both companies will benefit from the combined product portfolio, targeted at helping enterprises and carriers manage their growth in an efficient and secure manner.
- Both companies have developed a strategy and commitment to delivering an excellent customer experience, which will be a key pillar of the combined company.
- The combination of the two companies creates a stronger, more nimble competitor to the incumbents."
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 on a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities. For more information, please visit www.level3.com.
About tw telecom
tw telecom, headquartered in Littleton, Colo., is a leading national provider of managed services, including Business Ethernet, converged and IP VPN solutions for enterprises throughout the U.S. and globally. tw telecom also delivers secure, scalable private connections for transport data networking, Internet access, voice, VPN, VoIP and security to large organizations and communications services companies. Employing a resilient fiber network infrastructure, robust product portfolio and its own Intelligent Network capabilities, tw telecom delivers customers overall economic value, an industry-leading quality service experience, and improved business productivity. Please visit www.twtelecom.com for more information.
Caisson Technologies is a northwest-based telecommunications consulting company. We sell the business phone and Internet services of over 40 telecom providers, including Level 3 and tw telecom. We're the better way to buy because we work with the service providers so you don't have to. We're here longterm, so you always know who to call. And we save you money, typically 20 - 30%. Plus, our consulting is free. Here's how.