Broomfield, Colorado – (The Hosting News) – July 25, 2006 –
Software Spectrum, a wholly owned subsidiary of Level 3 Communications, Inc., will be sold to Insight Enterprises, Inc., a provider of information technology products and services. Software Spectrum is a reseller of business software and mobility solutions to large and medium-sized firms.
Under the terms of the agreement, Level 3 will receive total consideration of $287 million payable in cash at closing. The purchase price is subject to customary working capital and certain other post-closing adjustments. Charles C. Miller III, Vice Chairman of Level 3 explained, ”We are pleased that we have reached this agreement with Insight and believe both Software Spectrum’s and Insight’s customers will benefit from the transaction. Level 3’s communications business is presenting numerous investment and growth opportunities. The proceeds from the sale of Software Spectrum will increase Level 3’s ability to pursue those opportunities that are more central to our communications business.”
Keith Coogan, Chief Executive Officer of Software Spectrum added, ”We are looking forward to joining forces with Insight,” said “Both companies share a similar, client-centered culture. Software Spectrum’s client base and its capabilities in software are a strong addition to Insight’s hardware and services competencies.”
Richard Fennessy, Chief Executive Officer of Insight commented, ”We are extremely excited about the acquisition of Software Spectrum. The company is an excellent complement to Insight’s capabilities and geographic presence. The acquisition will accelerate our companies’ joint progress toward our goal of being a trusted advisor in providing complete technology solutions to companies globally.”
The sale is subject to regulatory approval as well as certain other customary closing conditions, and is expected to close in the third quarter of 2006. According to the company, Level 3, an international communications and information services 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.
The services are designed to provide building blocks to enable Level 3’s customers to meet growing demands for advanced communications solutions. Level 3 services are provided by a wholly owned subsidiary of Level 3 Communications, Inc.
To learn more about Software Spectrum, please visit: www.softwarespectrum.com.
For more information about Level 3 Communications, Inc., please visit: www.level3.com.