Level 3 Communications Inc. on Tuesday said it agreed to buy rival Broadwing Corp. for $1.45 billion in cash and stock to expand its services for other telecommunications providers as well as corporate customers.
The deal is the latest in a shopping spree by Level 3, which this year agreed to buy privately held companies Looking Glass Networks Inc., TelCove Inc. and ICG Communications.
Level 3 will pay $8.18 in cash plus 1.3411 shares of Level 3 for each share of Broadwing, a provider of communications services to other service providers and to enterprises.
The deal values Broadcom at $15.98 based on Level 3’s afternoon trading price of $5.82, which was up 50 cents, or 9.4 percent, on Nasdaq. Broadwing’s shares rose $2.31, or 17.4 percent, to $15.59 in afternoon trade.
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