Level 3 to Acquire McLeod Dial-Up Business
Global communications and information services provider Level 3 announced on Friday that it has reached agreement with McLeodUSA to acquire some of its Internet and data assets and wholesale dial-up Internet Service Provider customer base, formerly part of Splitrock Services, for $55 million plus the assumption of some company debt.
Level 3 will pick up 350 American points of presence and related facilities, equipment and circuits, allowing it to expand its modem service from 37 states to 50, and cover 80 percent of the U.S. population.
McLeodUSA will retain its Level 3 fiber Internet Relay Unit. McLeodUSA will also continue providing service and support to its in-region customers.
"We expect our acquisition of the McLeodUSA dial-up access business assets to not only expand the geographic reach of our dial-up Internet access service, but also to increase our revenue opportunities with McLeodUSAs existing wholesale customers," said Kevin OHara, Level 3s president and chief operating officer.
The transaction is expected to close in early 2002, pending federal approval.