Level 3 to Acquire Global Crossing

Level 3 Communications has reached an agreement to acquire Global Crossing Limited in a tax-free, stock-for-stock transaction valued at about $2 billion, the companies announced April 11.

The combination of the two network infrastructure companies will result in a global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve customers in more than 50 countries, with connections to more than 70 countries.

Together, the two companies had 2010 revenues of $6.26 billion and adjusted EBITDA of $1.27 billion, or $1.57 billion after expected synergies.

The companies said the new ...