LEVEL 3 COMMUNICATIONS / XCOM TECHNOLOGIES MERGER COMPLETED
OMAHA, NE, April 29, 1998 – Level 3 Communications, Inc. (Nasdaq: LVLT) today announced the merger between a wholly owned subsidiary of Level 3 and XCOM Technologies, Inc., has been completed and was effective Thursday, April 23, 1998.
The terms of the merger agreement called for a stock-for-stock transaction at a fixed exchange rate with no collars. At closing, approximately 2.6 million shares of Level 3 common stock were exchanged for all of the outstanding common and preferred stock of XCOM. At Level 3's closing price on April 23 ($63.75), the merger consideration for XCOM is approximately $168 million, exclusive of warrants and options.
Located in Cambridge, Massachusetts, XCOM is a competitive local exchange carrier and communications software development company. Founded in 1996, XCOM offers virtual points of presence to Internet service providers and remote access solutions to corporate customers on a regional basis.
Level 3 is a communications and information services company building an advanced Internet Protocol (IP) technology based network across the U.S. that is expected to be completed in phases over the next 36 months. To provide service in the interim, Level 3 has signed an agreement to lease capacity on a national network over which it will be able to offer advanced IP-based services in selected cities beginning in the third quarter of 1998. Level 3 will be the first company to combine both local and long distance IP technology based networks connecting customers end-to-end across the U.S. The company will focus primarily on the business market using its network to provide a full range of communications services – including local, long distance and data transmission as well as other enhanced services and Internet access services. Plans also call for the company to expand internationally. Level 3's common stock is traded on the Nasdaq National Market under the symbol LVLT. Its World Wide Web address is www.Level3.com.
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
