Level 3 Communications, Inc. and regional Internet Service Provider (ISP) GeoNet Communications, Inc. today announced they will merge in a $21 million stock deal.
The companies said the merger will be finalized in the third quarter, 1998.
Redwood City, CA-based GeoNet is a Tier-1 ISP that provides direct
Internet access to Northern California residents. The company also provides
turnkey
Internet solutions for commercial customers in the San Francisco Bay area, and is
responsible for providing Internet services to trade shows and conventions,
including wiring the COMDEX/Fall Show in Las Vegas for the past two years.
Communications and information services provider Level 3, based in Omaha,
is in the process of
building the first global Internet network, combining local and long
distance networks
to connect customers end-to-end across the U.S. and Europe. Level 3 said it
expects
the U.S. intercity network segment to be completed by the first
quarter of 2001.
“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. “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.”
“We believe that Level 3 is a great partner for GeoNet shareholders, for
our customers, and for our
employees,” said John Russo, founder and CEO of GeoNet. “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.”