Level 3 announced Tuesday that it completed its $135.2 million acquisition of Savvis’ content delivery network services business. In the cash deal Level 3 picked up network assets, customer contracts and “intellectual property.”
Level 3 announced Tuesday that it completed its $135.2 million acquisition of Savvis’ content delivery network services business. In the cash deal Level 3 picked up network assets, customer contracts and “intellectual property.”
The service provider says in a statement that it excepts to easily integrate the CDN business. “This acquisition does not require the type of physical integration associated with the metro and backbone transactions we announced in 2006. We are confident in our ability to incorporate this key capability into our service portfolio,” says Kevin O’Hara, president and COO at Level 3.
This is Level 3’s sixth substantial acquisition in two years. In October the service provider announced its plans to acquire Broadwing for $1.4 billion. In late 2005 it acquired WilTel for $700 million. These two acquisitions brought business customer contracts, business service portfolios and network assets to Level 3, which up until 2005 really only focused on wholesale services.
In May 2005 Level 3 acquired TelCove, primarily for its 22,000 route miles of local and long-haul fiber and its fiber to 4,000 office buildings along the East Coast. It also bought Progressive Telecom for about $68.5 million in March and ICG Communications for $163 million in April of the same year.
