Consolidated Communications Holdings Inc. has acquired FairPoint Communications in a deal worth an estimated $1.3 billion.
Consolidated Communications, a broadband and business service provider, will reach 24 states, according to a press release.
“Consolidated Communications’ mission is to turn technology into solutions, connecting people and enriching how they work and live,” Bob Udell, president and CEO of Consolidated Communications, said in the release. “We know our customers’ needs are changing and this business combination creates a stronger company with greater scale and resources to serve our customers. We are excited to close on the acquisition and look forward to realizing the many benefits of this merger and leveraging our combined team’s expertise.”
FairPoint’s stockholders have received a fixed exchange rate for their shares of Consolidated Communications's stock, the release said.
“The financial benefits associated with the combination in the form of cost savings and reduced financial leverage provide us additional operating and strategic flexibility going forward,” Udell said. “The transaction is meaningfully accretive to free cash flow per share in the first year and supports our current dividend policy to shareholders while making meaningful investments to enhance the network.”
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