Level 3 to Acquire ICG Communications

Level 3 announced that it is acquiring ICG Communications.

IP infrastructure titan Level 3 Communications is continuing its acquisitive ways. This morning Level 3 announced that it is acquiring ICG Communications for $163 million in cash and stock. ICG primarily provides transport, IP and voice services to more than 1,600 customers. The deal does not include ICG's investments in New Global Telecom or Mpower Holding Corporation.

"This transaction gives Level 3 the opportunity to further expand our footprint into areas where we see demand for our services, and to realize cost savings," said Kevin O'Hara, president and chief operating officer.

Back in April 2004, Level 3 paid $35 million to acquire ICG's dial-up business, which provided dial-up Internet access to America Online, EarthLink, MSN, United Online and other leading ISPs.