Level 3 expands CDN capabilities with Global Crossing acquisition
Michelle Clancy ©RapidTVNews | 05-10-2011 Level 3 Communications has completed its acquisition of wholesale IP specialist Global Crossing, announcing that the combined company will do business under the Level 3 name.
The Global Crossing acquisition gives Level 3 a worldwide, in-depth footprint that it hopes to leverage for better execution of caching technologies and localised video service awareness. It plans to cater to medium to large content customers, anchored by 165,000+ fibre route miles on three continents in more than 45 countries, as well as substantial undersea facilities.
Level 3 is known for its role in content distribution via traditional CDN services for broadcasters as well as OTT distribution for the likes of Netflix.
"Our enterprise is now a global, state-of-the-art communications company that is substantially bigger and financially stronger, with an unrivalled and global reach, and an entrepreneurial culture singularly focused on the customer experience," said James Q. Crowe, CEO of Level 3.
"We believe the rapidly evolving communications market represents an extraordinary opportunity for us, and we are well positioned to capitalise on it."
The combined business had pro forma 2010 revenues of $6.2 billion and pro forma 2010 Adjusted EBITDA of $1.3 billion before synergies and $1.6 billion after expected synergies. Total synergies are expected to be approximately $300 million of run-rate EBITDA, of which the company expects to realize the substantial majority within 18 months.