BROOMFIELD, Colo., July 20, 2006 ¾ Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that it has signed a definitive agreement to sell its wholly owned subsidiary, Software Spectrum, to Insight Enterprises, Inc., (Nasdaq: NSIT), a leading provider of information technology products and services. Software Spectrum is a leading reseller of business software and mobility solutions to large- and medium-sized organizations.
Under the terms of the agreement, Level 3 will receive total consideration of $287 million payable in cash at closing. The purchase price is subject to customary working capital and certain other post-closing adjustments.
“We are pleased that we have reached this agreement with Insight and believe both Software Spectrum’s and Insight’s customers will benefit from the transaction,” said Charles C. Miller III, vice chairman of Level 3. “Level 3’s communications business is presenting numerous investment and growth opportunities. The proceeds from the sale of Software Spectrum will increase Level 3’s ability to pursue those opportunities that are more central to our communications business.”
“We are looking forward to joining forces with Insight,” said Keith Coogan, chief executive officer of Software Spectrum. “Both companies share a similar, client-centered culture. Software Spectrum’s client base and itscapabilities in software are a strong addition to Insight’s hardware and services competencies.”
“We are extremely excited about the acquisition of Software Spectrum,” said Richard Fennessy, chief executive officer of Insight. “The company is an excellent complement to Insight’s capabilities and geographic presence. The acquisition will accelerate our companies’ joint progress toward our goal of being a trusted advisor in providing complete technology solutions to companies globally.”
The sale is subject to regulatory approval as well as certain other customary closing conditions, and is expected to close in the third quarter of 2006.
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.
