Level 3 Buys ICG For $163M

Level 3 has purchased Colorado Springs, Colorado-based ICG Communications, for $163M. Level 3 said today that it would pay $36M in cash and $127M in stock for ICG, which provides telecommunications services, colocation, and other networking services to wireless carriers, ISPs, and enterprise customers. ICG primarily services Colorado and Ohio. According to Level 3 Communications, ICG is expected to generate $75 to $80M in annual revenue for the firm. The acquisition does not include ICG's investment in New Global Telecom or Mpower Holding Corporation. ICG had just invested in New Global Telecom, a provider of Voice over IP services, last month.