CenturyLink Inc. (NYSE: CTL) agreed to buy Level 3 Communications Inc. (NYSE: LVLT) for about $34 billion cash and stock in a deal that will create a more formidable competitor in the market for business telecommunications services.

The acquisition values Level 3 at $66.50 a share, the companies said in a statement. That’s about 42 percent above where the Broomfield, Colorado-based company was trading earlier in October, before reports surfaced of a potential acquisition by CenturyLink, which is based in Monroe, Louisiana. The value of the deal includes assumed debt.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.