- Consolidated Communications (NASDAQ:CNSL) announces that it acquired FairPoint Communications (FRP) for ~$1.5B, including debt.
- “This transaction combines two companies with extensive fiber networks and complementary strategies focusing on being the leading business and broadband solutions provider,” says Consolidated CEO Bob Udell.
- Under the terms of the deal, FairPoint shareholders will receive a fixed exchange ratio of 0.7300 shares of Consolidated Communications stock for each share of FairPoint held. After closing, Consolidated’s shareholders will own approximately 71.3% of the pro forma combined company and FairPoint’s shareholders will own 28.7%.
- The company says the transaction is expected to generate annual operating synergies of ~$55M, which are expected to be achieved within two years after completion of the merger.
- Source: Press Release