Level 3 to buy TelCove for $1.1B

Network provider Level 3 has agreed to buy TelCove for about $1.1 billion in cash and stock. The deal brings an extended land-line network and wireless spectrum to the company. Level 3 said the purchase price includes $637 million in stock and $445 million in cash. The company will also assume $155.5 million in TelCove debt. Level 3 expects its newest asset to generate operating income before depreciation and amortization of $125 million to $135 million on revenue of $380 million to $400 million in 2006.

For more on Level 3's acquisition of TelCove:
- see this article from the AP