Level 3 Communications announced today that it's acquiring Global Crossing for $1.9 billion in stock. In addition, Level 3 will assume $1.1 billion of Global Crossing debt, giving the deal an overall cost of $3 billion, according to Level 3.
The deal merges two of the larger remaining carriers that compete in the enterprise market against incumbents AT&T and Verizon. Level 3 CEO Jim Crowe noted, "The complementary fit between the two companies' networks, service portfolios and customers." The WSJ article linked above predicts savings from "synergies from network expense savings, operating expense savings and reductions in capital spending."
If the deal does end up strengthening the merged company, that could be good news for enterprise customers who are looking to procure SIP trunks. For a detailed look at SIP Trunking procurement, check out this 2-part article by the top procurement attorneys in the field, Levine, Blaszak, Block & Boothby (LB3): Part 1
Part 2
