Company Expands Portfolio with Video Management and Streaming Services to Enable Formatting and Delivery of Content to the Internet
DUBLIN, Ireland, July 11, 2007- Level 3 Communications, Inc. (NASDAQ:LVLT) today announced that its operating subsidiary has acquired Servecast Limited, a Dublin-based provider of live and on-demand video management and streaming services for broadband and mobile platforms. Level 3 has paid approximately €33 million, the equivalent of approximately $45 million, in cash to complete the acquisition of Servecast.
Founded in 1998, Servecast offers proven publishing and distribution tools for video rights holders to monetize their digital assets. These tools enable customers to manage, protect, deliver and track online audio and video content. Servecast provides an easy-to-use platform that supports multiple stream rates, languages, currencies and formats, including Adobe Flash™, Real Player™, Windows Media Player™ and Apple QuickTime™. Servecast’s capabilities have been developed for easy adaptation to emerging video formats and other content delivery technology.
“Servecast’s video and rights management platform, combined with its streaming services complement Level 3’s existing portfolio of content delivery capabilities,” said Brady Rafuse, president of Level 3’s Content Markets Group and European Markets Group. “The addition of these services accelerates our planned development of this technology. These capabilities will enable us to manage and distribute online video content in multiple formats to meet the increasing demand for high-quality video over the Internet.”
“We are excited to be joining Level 3,” said Darach Deehan, chief executive officer of Servecast. “We believe Level 3’s scale and capabilities across Europe and North America will provide our customers an important opportunity to access new markets.”
“We are confident in our ability to continue offering Servecast’s customers high-quality service as we incorporate these key capabilities into our portfolio and expand the availability of these services to additional markets in Europe and into new markets in North America,” said Rafuse. “This is a strategic capabilities acquisition that does not require the type of physical integration associated with our larger, previously announced metro and backbone transactions.”
Level 3 plans to maintain Servecast’s headquarters and broadcast operations center in Dublin, as well as its data centers in London and Amsterdam. Servecast’s existing streaming server sites throughout Europe and North America will also be incorporated into Level 3’s Content Delivery Network.
Servecast had approximately $5 million in annual revenue for 2006. IBI Corporate Finance advised Servecast in relation to the transaction.
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.
