Internet backbone provider Level 3 Communications will acquire Broadwing, a provider of voice, data and media services, in a cash and stock deal worth about US$1.4 billion.Broadwing sells fiber network-based services in the wholesale and large-business markets, and the acquisition will help Level 3 expand its recent focus on the large-business market, Level 3 Chief Executive Officer James Crowe said in a press release. The deal will also bolster Level 3’s traditional focus on the wholesale market, he said.Level 3 announced an expansion of its large-business units in late May. Since mid-April, the company has announced deals to acquire TelCove, a privately held Pennsylvania telecommunications company, for $1.24 billion; ICG Communications, a privately held Colorado telecom company, for $163 million; and Looking Glass Networks, a privately held Illinois provider of data transport services, for $165 million.Level 3 completed an acquisition of Progress Telecom, a wholesale network services company based in St. Petersburg, Fla., in March. The acquisitions give Level 3 a broader network infrastructure in metro areas across the United States, the company said. Broadwing, in Austin, Texas, delivers data, voice and media services to enterprises and telecom service providers over its 19,000-mile (30,577-kilometer) intercity fiber network. Broadwing’s revenue is roughly split between the wholesale market and business customers.Level 3 expects to pay about $744 million in cash and issue about 122 million of its shares in the deal. Level 3 will pay $8.18 in cash and 1.3411 shares of its common stock for each share of Broadwing common stock outstanding at the deal’s closing, Level 3 said. The companies expect the deal to close in the first quarter of 2007. Broadwing’s stockholders, as well as state and federal government regulators, must approve the deal.Level 3 expects total integration costs to be between $110 million and $130 million. The company expects the acquisition to contribute to positive cash flow by 2008.-Grant Gross, IDG News Service (Washington Bureau)Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature Red Hat embraces hybrid cloud for internal IT The maker of OpenShift has leveraged its own open container offering to migrate business-critical apps to AWS as part of a strategy to move beyond facilitating hybrid cloud for others and capitalize on the model for itself. By Paula Rooney May 29, 2023 5 mins CIO 100 Technology Industry Hybrid Cloud feature 10 most popular IT certifications for 2023 Certifications are a great way to show employers you have the right IT skills and specializations for the job. These 10 certs are the ones IT pros are most likely to pursue, according to data from Dice. By Sarah K. White May 26, 2023 8 mins Certifications Careers interview Stepping up to the challenge of a global conglomerate CIO role Dr. Amrut Urkude became CIO of Reliance Polyester after his company was acquired by Reliance Industries. He discusses challenges IT leaders face while transitioning from a small company to a large multinational enterprise, and how to overcome them. By Yashvendra Singh May 26, 2023 7 mins Digital Transformation Careers brandpost With the new financial year looming, now is a good time to review your Microsoft 365 licenses By Veronica Lew May 25, 2023 5 mins Lenovo Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe