Internet services provider Level 3 Communications Inc. (LVLT) announced Tuesday the completion of its acquisition of New-Jersey based computer-networking services provider Global Crossing Ltd. (GLBC) in an all-stock deal. The combined company will conduct its business using the Level 3 Communications name with a new brand identity.
Further, the company plans to transfer the listing of its common stock to the New York Stock Exchange, and also said it will implement a 1-for-15 reverse stock split of its common stock.
It was in April that Level 3 agreed to acquire Global Crossing in an all-stock deal reportedly valued at $3 billion. In the transaction, Level 3 had issued 1.3 billion shares, with Global Crossing shareholders getting 16 shares of Level 3 for every share they owned.
The company has about 3.1 billion shares outstanding, and the reverse stock split announced today would reduce its number of shares outstanding to about 207 million and the number of authorized shares of Level 3 common stock from about 4.4 billion to 293 million. The firm expects the split to be effective after the close of trading on October 19, and begin trading on a split adjusted basis on the NYSE from October 20 onwards.
The combined business had pro forma 2010 revenues of $6.2 billion, and Level 3 expects the acquisition to add to its earnings on a free cash flow per share basis in 2013.
The firm expects total synergies following the transaction to be about $300 million of run-rate EBITDA, a substantial majority of which it expects to realize within 18 months.
Looking ahead, Sunit Patel, Executive VP and CFO of Level 3, said, "As a result of potential revenue growth and synergies, over the longer term, we expect to have significant Free Cash Flow available for investment in high-return opportunities, including U.S. and international network expansions. We continue to feel good about our business for the remainder of the year, and have improved confidence around our synergy targets."
Monday, Level 3 shares closed at $1.41 on the Nasdaq and Global Crossing traded at $22.38 on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.