Level 3 Communications Inc., a long-distance phone- and data-network operator based in Broomfield, has agreed to buy Looking Glass Networks Inc. for $96 million in cash and stock to expand its service in major U.S. cities.
In addition to $9 million in cash and about $87 million in stock, Level 3 will also pay off Oak Brook, Ill.-based Looking Glass’ debt of about $69 million, according to a filing Monday with the Securities and Exchange Commission.
Looking Glass has data-network services in 14 major metro markets. It connects cross-country Internet/data networks such as Level 3’s to downtown business buildings across the country – known in the telecommunication industry as “last mile” connections.
Level 3 has been on a buying spree in the last six months, snapping up four companies around the U.S. It has spent close to $2 billion on purchases since December, including $163 million for Englewood-based ICG Communications Inc.
In May, Level 3 said it would buy Philadelphia-based TelCove Inc. for $1.2 billion. It also said it will buy Progress Telecom in St. Petersburg, Fla., for $137 million and WilTel Communications Group in Tulsa, Okla., for $386 million.
Looking Glass is expected to generate $70 million to $80 million this year in revenue.
Shares of Level 3 fell 33 cents to close at $4.69. The stock has gained 63 percent this year.
The deal is expected to close by the end of September.
