Boston, MA 06\/17\/2014 (wallstreetpr) \u2013 Internet service provider, TW Telecom Inc. (NASDAQ:TWTC)<\/b>, is set to be acquired by Telecommunications Service Company Level 3 for $40.86 a share. Level 3 through its share purchase price, values TW Telecom at $5.64 billion and plans to use the company to expand its commercial fiber network in the U.S. The purchase price represents a 12% premium as of Friday closing price of $36.34.<\/p>\n
Level 3 to Absorb $1.6 Billion in Debt<\/b><\/p>\n
Terms of the deal will involve TW Telecom stockholders getting $10 in cash and 0.7 share of level 3. Taking into consideration TW Telecom\u2019s net debt of $1.6 billion the deal could reach highs of $7.3 billion. TW Telecom mainly provides phone and data services to business and customers and internet access. The transaction will essentially allow Level 3 to own more network capacity in cities with high traffic giving it more control over pricing.<\/p>\n
Since the beginning of the year,\u00a0TW Telecom Inc. (NASDAQ:TWTC) has gained 19% including a 12% jump on June 13 when reports emerged level 3 had intensified talks over a possible takeover. The transaction now awaits approval from shareholders of both companies set for full closure in the fourth quarter. Level 3 has already committed $3 billion for financing the deal.<\/p>\n
Merger to Result in $240 Million in Annual Savings<\/b><\/p>\n
The companies expect the merger to enable higher quality and more reliable internet service for businesses and customers across North America. The transaction is also expected to result in $240 million in annual savings including $40 million from capital expenses. The deal also solidifies Level 3\u2019s position as a global communications provider to enterprises, government and the carrier market.<\/p>\n
The combined company could have resulted in about $114 million in net income and $7.9 billion in revenue for the full year ending March 31. Level 3 expects synergies from the deal to reduce its net debt to adjusted earnings before interest, tax, depreciation and amortization to 4.5 from 4.6.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/17\/2014 (wallstreetpr) \u2013 Internet service provider, TW Telecom Inc. (NASDAQ:TWTC), is set to be acquired by Telecommunications Service Company Level 3 for $40.86 […]<\/p>\n","protected":false},"author":6,"featured_media":26026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236,263],"tags":[6652,6651],"stock_ticker":[],"class_list":["post-26015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-nasdaqtwtc","tag-tw-telecom-inc-nasdaqtwtc","entry"],"acf":[],"yoast_head":"\n