মঙ্গলবার, ২৬ এপ্রিল, ২০১১

Level 3 - Creating 2 billion of added value - beating the spread

By Tom Millitzer

What will this do for me? A thought that probably crosses most minds on a daily basis and obviously one asked during an acquisition. Level 3 is buying Global Crossing and it will do a lot for them.

First the numbers; Level 3 is buying Global Crossing in a deal valued at $3 billion (Includes $1 Billion assumed Debt) . The deal spin is a bit awkward....the press release states "Level 3 expects the acquisition to bring in another $300 million to its annual EBITDA, with two-thirds of that realized within 18 months of closing." I'm pretty good with math, so one can figure out they expect about $200 million in the first year. So is this a 15X EBITDA deal? Yes and NO... But I have to complement Level 3 on deal spin creative.

Source: http://feedproxy.google.com/~r/thewhir_blogs/~3/NcWojq5Uqek/041211_Level_3_Creating_2_billion_of_added_value_beating_the_spread

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