[Level 3 & GeoNet Sign Definitive Merger Agreement]
Merger Gives Level 3 Jump Start in Hot Silicon Valley Market
OMAHA, Neb., Aug. 18 /PRNewswire/ -- Level 3 Communications, Inc. (NASDAQ:LVLT) and GeoNet Communications, Inc., a regional Internet Service Provider (ISP) headquartered in Redwood City, CA, today announced that the two companies have executed a definitive agreement and plan of merger. The agreement is a stock for stock transaction valued at approximately $21 million. The merger is expected to close during the third quarter of 1998.
"The merger with GeoNet accelerates Level 3's business plan for moving into the leading edge Silicon Valley market in 1998," said Kevin J. O'Hara, executive vice president and COO of Level 3. "As part of Level 3, GeoNet will have an immediate impact on our business in a number of significant areas. First, GeoNet possesses a first class team of technical, operations and sales personnel in one of the tightest labor markets in the country. We are looking forward to building our Northern California operations from this talented group. Second, the GeoNet team has built an award-winning ISP serving small and mid-size businesses which are logical prospects for Level 3's broader array of communications services."
According to John Russo, founder and CEO of GeoNet: "We believe that Level 3 is a great partner for GeoNet shareholders, for our customers, and for our employees. We share Level 3's vision of the power and efficiency of a completely IP-based communications network and look forward to contributing to Level 3's success."
Founded in 1994, GeoNet has developed into a Tier-1 ISP offering direct access to the Internet and serving over 200 customers in Northern California. GeoNet has been recognized as the region's "#1 value in T1 business Internet access" by the Keystone/Boardwatch Index, an independent survey of national Internet backbone providers. In addition to serving emerging, Internet-centric companies in the San Francisco Bay Area, GeoNet also provides Internet services to trade shows and conventions. For the past two years, the company has successfully wired the world's largest trade show network at COMDEX/Fall in Las Vegas, an event that attracts over a quarter of a million attendees annually.
"GeoNet's web-savvy customers look to us for outstanding performance and service," added Russo. "We are confident that our customers will find Level 3's leading edge services and tremendous resources are ideally suited to their current and future needs."
About GeoNet Communications, Inc.
GeoNet is a California-based Tier-1 Internet Service Provider specializing in turnkey Internet solutions for commercial customers. GeoNet's products range from high-speed T1 and T3 access for the corporate LAN to high-performance, fully customized Internet Web servers. GeoNet has implemented its own extensive nationwide IP over ATM backbone comprised entirely of leased fiber optic digital circuits. GeoNet is a peering member of the Internet backbone ensuring peak network performance. |
