Wednesday, July 19, 2006

Level 3 to Sell Software Subsidiary for $287 Million

Level 3 Communications agreed to sell its wholly owned subsidiary, Software Spectrum, to Insight Enterprises, for $287 million payable in cash at closing. Software Spectrum is a leading reseller of business software and mobility solutions to large- and medium-sized organizations.

Insight Enterprises is a leading provider of information technology products and services.

"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," said Charles C. Miller III, vice chairman of Level 3.

  • In May 2002, Level 3 Communications agreed to acquire Software Spectrum, a global business-to-business enterprise software services provider, for $37 per share in cash. The deal is valued at approximately $115.7 million. Software Spectrum, which is based in Dallas, Texas, provides enterprise software management and contact center solutions.

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