Level 3 Communications’s proposed $5.3 billion purchase of TW Telecom has been approved by the Federal Communications Commission.
The two Denver-area companies announced the cash and stock deal June 16. Shareholders of both companies are expected to vote in favor of the merger, at special meetings tomorrow.
There is only about a 10 percent overlap in footprints betweeen the two. TW Telecom gives Level 3 a better metro business proposition, while. TW Telecom’s customers will be able to take advantage of Level 3’s backbone networks and data centers in more than 60 countries as well as global subsea networks, it said.
“The combination strengthens our position as a global communications provider, and enhances our ability to gain market share,” said Jeff Storey, Level 3’s CEO. “We found our customers increasingly have global communications needs, whether it’s to connect to their employees around the world, connect to their suppliers or connect to their customers.”
The overall deal’s value reaches $7.3 billion including TW Telecom’s $1.6 billion in corporate debt. The U.S. Department of Justice cleared the merger last month, finding the combination didn’t raise anti-trust concerns.