Shares of Internet service provider Splitrock Services Inc. jumped nearly 22 percent today on news it will be acquired by phone company McLeodUSA Inc for about $1.8 billion.

McLeodUSA is a competitive local-exchange carrier based in Cedar Rapids, Iowa, going after Baby Bell customers. It provides phone directories, local and long-distance service, data, voice mail, paging and Internet access in 21 Midwestern and Rocky Mountain states. The Woodlands-based Splitrock provides Internet access and Web hosting to phone companies, Internet service providers and businesses. In the nine months ending Sept. 30, the company had a net loss of $77.4 million on revenue of $57.9 million. McLeodUSA president Stephen C. Gray said the transaction will accelerate by 18 to 36 months the company's plans to deliver an array of data. The acquisition also would give McLeodUSA access to a new long-distance network being built by Level 3 Communications Inc., of Omaha, Neb. Under the terms of the deal, Splitrock shareholders will receive 0.5347 share of newly issued McLeodUSA common stock for each Splitrock share. The deal also includes assumption of about $350 million in debt.