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Level 3 Buys ICG Communications for $163M
Apr 2006
BROOMFIELD, Colo., April 17, 2006 -- Level 3 Communications Inc. today announced that it will acquire ICG Communications Inc., a privately held Colorado-based telecommunications company, for $163 million. Under terms of the deal, Level 3 will pay $127 million in shares of its stock and $36 million in cash.

ICG primarily provides transport, IP and voice services to wireline and wireless carriers, Internet service providers and enterprise customers, Level 3 said. ICG's network has over 2000 metro and regional fiber miles in Colorado and Ohio and serves more than 1600 customers.

"ICG standalone is expected to generate approximately $75 to $80 million of annualized revenue and approximately $10 to $15 million of annualized positive cash flow after approximately $10 million in capital expenditures," said Sunit S. Patel, Level 3 CFO. "We expect annualized cash flow to improve to approximately $30 to $40 million once we have completed integration, which is expected to begin later this year."

The purchase price is subject to customary working capital adjustments, and the number of shares to be delivered will be determined immediately prior to closing. The transaction does not include ICG's investments in New Global Telecom or Mpower Holding Corporation. Closing is expected to occur mid-year 2006 and is subject to customary conditions, including applicable state and federal regulatory approvals.

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