CenturyTel acquires Qwest for $10.6 billion
Combination of third and fifth-largest U.S. telcos continues consolidation with combined companies serving about 17 million phone lines
CenturyTel today said it will buy Qwest Communications in a stock swap valued at $10.6 billion, solidifying the combined company as the number three landline provider after AT&T and Verizon.
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As part of the deal, CenturyTel will also assume $11.8 billion in Qwest debt, valuing the Qwest acquisition at $22.4 billion in total.
At the end of 2009, the two companies were operating in 37 states and serving about 5 million broadband customers, with 17 million access lines, as well as 1,415,000 video and 850,000 wireless clients. The combined companies also boast a national 173,000-mile fiber network.
Together, the companies said they’ll now have the ability to provide a variety of broadband products and services including Internet video, data hosting and managed services and more. In addition, the combined companies said they expect to realize $575 billion in savings within three to five years.
The deal continues consolidation among providers. CenturyTel acquired Embarq in 2008, the landline spinoff of Sprint Nextel.
The combined company's senior leadership team is expected to be comprised of executives from both CenturyLink and Qwest, including William A. Owens as chairman of the board and Glen F. Post, III as chief executive officer and president. Following the transaction, Qwest chairman and CEO Edward Mueller will also join the board. The corporate headquarters of the company will remain in Monroe, La. The company also will maintain a key operational presence in Denver, including a regional headquarters, the Qwest Business Markets Group and other functions.More to come on this story following a press conference this morning
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© 2012 Penton Media Inc.
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