Search Menu
Photonics Media Photonics Buyers' Guide Photonics EDU Photonics Spectra BioPhotonics EuroPhotonics Industrial Photonics Photonics Showcase Photonics ProdSpec Photonics Handbook
More News
Email Facebook Twitter Google+ LinkedIn Comments

Level 3 to Acquire Progress Telecom for $137M
Jan 2006
BROOMFIELD, Colo., Jan. 31, 2006 -- Level 3 Communications Inc. has agreed to acquire all of the membership interests of Progress Telecom LLC, a regional wholesale network services company based in St. Petersburg, Fla., which is jointly owned by Progress Energy Inc. and Odyssey Telecorp Inc.

Under the terms of the agreement, Level 3 expects to pay $137 million, with half, $68.5 million, being in unregistered shares of Level 3 stock and the other half in cash. The actual number of shares will be determined immediately prior to closing.

Progress Telecom's network spans 9000 miles, includes 29 metro networks and connects to international cable landings in south Florida and 31 mobile switching centers in the southeast. Progress Telecom serves approximately 200 customers, with a significant concentration of international and wireless carrier customers. Progress Energy is its largest customer. The company generates yearly revenues of approximately $70 million.

"This transaction represents a unique opportunity to expand Level 3's footprint in the southeastern region of the United States, where we have seen strong demand for our services," said Kevin O'Hara, president and COO of Level 3. "More importantly, we serve a number of the same large, key customers, particularly certain wireless and international customers. We believe that the completion of this transaction will enable us to expand our relationship with these customers and offer them a broader set of services in more markets outside the southeast. Progress Telecom is a very successful wholesale carrier in the southeastern United States and this acquisition will increase the extent of our network coverage in the region."

The agreement provides that Level 3 will not acquire certain assets and liabilities related to Progress Telecom's wireless tower attachment business and its interests in affiliates focused on providing distributed antennae systems and tower backhaul services to wireless providers. Level 3 plans to have commercial services agreements in place to provide transport services and operation support to these former Progress Telecom affiliates and to cooperate with them on the development of complementary service offerings to better serve the wireless carrier segment.

The purchase price is subject to certain customary working capital adjustments, and Level 3 has the right to substitute cash in lieu of delivering common stock. The closing is expected to occur early in the second quarter of 2006, assuming it receives state and federal regulatory approvals.

The company expects to provide additional information concerning this transaction during its announcement of fourth quarter 2005 earnings on Tuesday, Feb. 7. For more information, visit:

In morphological image processing, a series of dilations followed by the same number of erosions.
acquireclosingCommunicationsFloridaLevel 3networkNews & FeaturesOdyssey TelecorpProgress Telecomstock

Terms & Conditions Privacy Policy About Us Contact Us
back to top
Facebook Twitter Instagram LinkedIn YouTube RSS
©2018 Photonics Media, 100 West St., Pittsfield, MA, 01201 USA,

Photonics Media, Laurin Publishing
x We deliver – right to your inbox. Subscribe FREE to our newsletters.
We use cookies to improve user experience and analyze our website traffic as stated in our Privacy Policy. By using this website, you agree to the use of cookies unless you have disabled them.