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CenturyLink closes Level 3 takeover

2 Nov 2017

US network service provider CenturyLink has completed its previously announced USD34 billion acquisition of Level 3 Communications. Holders of Level 3 common stock (as of immediately prior to closing) are entitled to receive USD26.50 per share in cash (without interest) and 1.4286 shares of CenturyLink stock for each Level 3 share they owned. CenturyLink shareholders now own approximately 51% of the combined company, with former Level 3 stockholders now owning approximately 49%. CenturyLink remains headquartered in Monroe, Louisiana, with a key operational presence in Colorado and the Denver metropolitan area.

The combined company, with estimated pro forma revenue of USD24 billion for the trailing twelve months ended 30 June 2017, anticipates that approximately 75% of its core revenue will come from business customers and nearly two-thirds of its core revenue will come from strategic services. CenturyLink’s network now connects more than 350 metropolitan areas with more than 100,000 fibre-enabled, on-net buildings, including 10,000 buildings in EMEA and Latin America.

Jeff Storey, CenturyLink’s president and chief operating officer, commented: ‘Our goal is to be the world’s best networking provider and we have the ability to achieve this as one company. CenturyLink is focused on providing a differentiated experience for our customers, while driving profitable growth and increasing free cash flow per share. Our scale and experience will enable us to deliver on behalf of our customers, employees and our shareholders.’

United States, Level 3 Communications, Lumen Technologies (incl. Quantum Fiber/CenturyLink)

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