Level 3 Completes Sale of Software Spectrum Subsidiary for Total Proceeds of $353 Million
BROOMFIELD, Colo., September 7, 2006 - Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that it has completed the sale of its wholly owned subsidiary, Software Spectrum, to Insight Enterprises, Inc., (Nasdaq: NSIT), a leading provider of information technology products and services. Software Spectrum is a leading reseller of business software and mobility solutions to large- and medium-sized organizations.
Level 3 received total proceeds of $353 million in cash, consisting of $287 million in purchase price and approximately $66 million in a working capital adjustment. The purchase price is subject to certain post-closing adjustments.
About Level 3 Communications
Level 3 (Nasdaq: LVLT), an international communications company, operates one of the largest Internet backbones in the world. Through its customers, Level 3 is the primary provider of Internet connectivity for millions of broadband subscribers. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. These services provide building blocks that enable Level 3ís customers to meet their growing demands for advanced communications solutions. The companyís Web address is www.Level3.com.
The Level 3 logo is a registered service mark of Level 3 Communications, Inc. in the United States and/or other countries. Level 3 services are provided by a wholly owned subsidiary of Level 3 Communications, Inc.
Some of the statements made by Level 3 in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that its primary risk factors include, but are not limited to: increasing the volume of traffic on Level 3ís network; developing new products and services that meet customer demands and generate acceptable margins; successfully completing commercial testing of new technology and information systems to support new products and services, including voice transmission services; stabilizing or reducing the rate of price compression on certain of our communications services; integrating strategic acquisitions; attracting and retaining qualified management and other personnel; ability to meet all of the terms and conditions of our debt obligations; overcoming Software Spectrumís reliance on financial incentives, volume discounts and marketing funds from software publishers; and reducing downward pressure of Software Spectrumís margins as a result of the use of volume licensing and maintenance agreements. Additional information concerning these and other important factors can be found within Level 3ís filings with the Securities and Exchange Commission. Statements in this release should be evaluated in light of these important factors.
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- Josh Howell
- Level 3 Communications, Inc.
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