NEW YORK (AP) — Level 3 Communications Inc. says it has agreed to buy TW Telecom in a deal worth about $5.6 billion.
The Internet and telecommunications company says the acquisition will increase its local operations. Level 3 owns network and data centers around the world, while TW Telecom provides data and Internet and other services to businesses in the U.S.
Level 3 will pay $40.86 for each outstanding share of TW Telecom. As of April 30, TW Telecom had 137.9 million outstanding shares.
TW Telecom shareholders will receive $10 in cash and 0.7 shares of Level 3 for each share they own. The deal is expected to close in the fourth quarter.
Shares of TW Telecom jumped almost 12 percent to $40.55 in premarket trading while Level Three shares added 2 percent.