CenturyLink on Monday agreed to merge with Level 3 Communications in a $25 billion deal that would create one of the largest communications providers for businesses.

The combined company would have about 500,000 route miles of fiber that carry broadband, video and voice that enable corporations to communicate. It would also produce about $19 billion in annual revenue on a pro forma basis.

Under the terms of the deal, CenturyLink of Monroe, La., will acquire Level 3 of Broomfield, Colo., for $26.50 in cash and 1.4286 shares of CenturyLink stock for each Level 3 share, according to a statement issued by the companies Monday.

Including Level 3's $10.9 billion in debt, the transaction amounts to about $36 billion. That represents a premium of almost 50 percent from Level 3's share price Wednesday before reports surfaced of a potential deal.

CenturyLink's shareholders will own 51 percent of the combined company, while Level 3's will hold the rest.

Ranked among the top 10 defense contractors in the country, Level 3 Communications has multiple operations in the Tampa Bay area. That includes a sizable facility in the St. Petersburg Gateway area that, among other products, over the years has delivered hundreds of body scanners to Tampa International Airport and other aviation facilities. Level 3 also signed a multiyear deal in 2013 to provide Internet services to Raymond James Stadium and One Buccaneer Place to support the Tampa Bay Buccaneers. Level 3 occupies two locations in Tampa: one on W Kennedy Boulevard, the other in Ybor City.

"This transaction furthers our commitment to providing our customers with the network to improve their lives and strengthen their businesses," Glen F. Post III, CenturyLink's CEO and president, said in a statement. "It is this focus on providing fiber connectivity that will continue to distinguish CenturyLink from our competitors."

Post would continue to serve in his executive role of the combined company.

The companies also plan to achieve about $975 million a year in cost savings by eliminating duplications and improving operations, the companies said in the statement.