For those of you around in the late 90s, you most likely will remember Global Crossing (which at the time had a different symbol). This was the company that went haywire laying fiber optic cable across the earth, including across ocean floors, in anticipation of the boom of the internet. While they were correct (eventually) of the need, a lot of the fiber laid dark as it was not needed anytime soon, and the company went into a tailspin - eventually filing for bankruptcy. It was eventually reborn, and brought back to public markets but with none of the fanfare of the old days. Today, Level Three (LVLT) announced it was acquiring Global Crossing for $1.9B; a hefty 56% premium.
- In a deal that harkened back to the days of the first Internet boom, telecom-networking companies Level 3 Communications Inc. said Monday it would acquire Global Crossing Ltd. in an acquisition worth $1.9 billion.
- The all-stock transaction also includes Level 3 assuming $1.1 billion in Global Crossing’s debt, bringing the total deal worth $3 billion. The deal values Global Crossing at $23.04 a share, or a 56% premium over the company’s closing stock price on Friday.
- The companies are best known for operating fiber optic networks and will be able to serve 70 countries after the deal closes. The acquisition also brings together two of the companies that had been high-fliers during the Internet bubble of more than a decade ago. ST Telemedia bought its controlling stake in Global Crossing in 2003 after that company file for Chapter 11 bankruptcy protection in 2002.