Level 3 Communications Inc. (LVLT -5.83%) agreed to buy business Ethernet provider TW Telecom for about $5.7 billion in cash and stock, a deal that would expand the metropolitan footprint of the long-haul Internet carrier.
The deal values TW Telecom at $40.86 a share, a 12% premium to Friday’s close. Shareholders would receive $10 in cash and 0.7 share of Level 3 for each share of TW Telecom.
TW Telecom shares rose in early trading to approach the offer price.
Level 3 Chief Executive Jeff Storey pointed to TW Telecom’s extensive local operations, which he said would complement Level 3’s global assets. Level 3, an operator of Internet networks that help companies send videos or other content more quickly, has network and data centers in more than 60 countries, along with global subsea networks.