Call Cox communications plans to buy an American communications giant that provides services to telecommunications companies and other Internet-connected companies for $2.5 billion.
The transaction, which has not yet been approved by regulators, would make Cox one of the largest telecoms in the world with more than 1,500 employees and over 300 locations, according to a person familiar with the matter.
The deal is expected to close by the end of the year.
Callcox’s chief executive, Dan Wiedefeld, would not comment on the deal, saying the transaction was “not yet final.”
A spokesman for Cox said the company had “nothing further to share” on the transaction.
“This is a strategic acquisition of a highly regarded global communications company that will help us grow and compete with the world’s leading telecoms,” Cox spokesman Steve Johnson said.
The companies have already signed agreements to buy other assets, including a data center in Texas and a $100 million deal to lease a new campus in the San Francisco Bay area.
Call Cox has grown into a global communications firm that is a member of the Dow Jones Industrial Average, one of America’s biggest stock indexes.
The company is based in San Francisco and is owned by billionaire hedge fund manager John Paulson, who owns a stake in Calloway Holdings.
The price tag includes $2 billion in cash, a $1.6 billion stock buyback and the purchase of an unspecified amount of Calloway stock, according, to a source familiar with Calloway’s thinking.
The acquisition would be Calloway company’s second deal with Cox.
In March, the company bought a $5 billion stake in rival Cox Communications.
That deal was struck at the same time as the company announced a $20 billion buyback plan to make it one of its largest private companies.
Cox also announced a merger with rival Verizon Communications in November 2016.
That merger was the largest in the U.S. in history, and it was the only one that included an acquisition by a single company.
Calloway, which was founded in 2005, offers telecommunication services to more than 3,000 companies in the telecommunications and data-intensive industries.
The merger was announced in a press release on Wednesday.
The two companies have worked together in other deals, including in 2015 when the company paid $1 billion for the purchase and management of its business in China, the New York Times reported.
“Cox is poised to become one of Silicon Valley’s most successful businesses, and this acquisition will help our global business reach new heights,” Cox CEO John Whitehead said in the release.