Level 3 Communications says it will acquire Global Crossing Ltd. in an all-stock transaction valued at about $2 billion.
The telecommunications companies announced Monday that Global Crossing shareholders will receive 16 shares of Level 3 common stock in exchange for each share of Global Crossing common or preferred stock. Level 3 will also assume $1.1 billion of Global Crossing’s debt.
The combined company will own a worldwide communications network with service to 70 countries. In 2010, the companies would have had combined revenue of $6.26 billion.
The acquisition requires regulatory and shareholder approval. The deal is expected to close before the end of the year.