Level 3 to acquire Global Crossing for £1.15bn

Fibre network provider Level 3 is to acquire rival Global Crossing for $1.9bn (£1.15bn) in a move that will give the company a fibre optic network base across three continents with undersea links.

Level 3 outlined several benefits to the move, including a cut in spending on infrastructure, an improved financial position and an expanded global footprint which will reach more than 70 countries.

The acquisition will allow Level 3 to enhance its offerings to meet the needs of enterprises at a local, national and international level, the firm said, particularly given Global Crossing's access rights to tier-one cables in Asia and across the Pacific ocean.

Jim Crowe, chief executive of Level 3, said that the move offers huge benefits for customers, and provides a platform on which the company can meet future demand.

"This is a transformational combination that we believe will deliver significant value to investors, customers and employees of Level 3 and Global Crossing," he said.

"By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well positioned to meet the local and international needs of our customers."

Global Crossing chief executive John Legere added that the move enables the two companies to be more competitive against key rivals such as Akamai Technologies.

"The combined service capabilities, extensive network assets and talented employees of the two companies will create a stronger global communications competitor with compelling offerings in the marketplace," he said.

"Each of our companies has a reputation for being nimble and flexible in meeting customers' communications needs, and we expect that to continue with the benefit of offering customers significantly greater reach, products and services."

The move marks another eventful chapter in Global Crossing's history after it was hit hard by the dot-com crash and eventually had to file for bankruptcy in 2002.