NEW YORK (Reuters)—Telecommunications infrastructure company Level 3 Communications Inc. said on Monday it agreed to buy Looking Glass Networks Inc., a privately held provider of metropolitan fiber optic networks, for $96 million in stock and cash.
Level 3 will pay $87 million in unregistered shares of its common stock and $9 million in cash. At closing, it will pay liabilities—primarily senior secured debt—of about $69 million.
For full year 2006, Looking Glass is expected to generate revenue of about $75 million to $80 million, about 25 percent higher than in 2005. Gross margin is expected to be over 70 percent, the companies said.
Level 3 Chief Financial Officer Sunit Patel formerly served as CFO of Looking Glass Networks.