CT Communications, a telecommunications and data services provider based in Concord, is being sold in a deal worth $585 million.
Windstream Communications, which was spun out of Alltel, is based in Little Rock, Ark. It offers telecommunications and broadband services in 16 states.
The deal offers CT shareholders $31.50 per share, a 31 percent premium over the average share price of the most recent 30 trading days. CT stock is traded on the NASDAQ under the symbol CTCI.
Windstream acquires 158,000 access lines and 29,000 broadband customers as part of the deal. Windstream already did offer some coverage area in North Carolina.
Including debt, the CT acquisition is worth $585 million.
CT was founded as The Concord Telephone Company in 1897.
"For 110 years, it has been our pledge to develop and deliver innovative, diversified services that are competitive and dependable for our customers, and to provide our shareholders with attractive financial results" said Mike Coltrane chairman, president and CEO of CT Communications "Because of our strong operational and fiscal performance over the last several years, we found ourselves in the unique and enviable position of possessing significant cash reserves and very low debt. As such, we found ourselves willing to explore strategic options for our company, and fully believe that this merger will provide the long-term value that our shareholders deserve."
The deal is expected to close in the second half of this year.
“CT Communications’ management and employees have built an exceptional business and are highly respected in their local communities,” said Jeff Gardner, Windstream’s chief executive officer. “CT Communications fits strategically with Windstream and advances our strategy of continuing to grow through acquisitions while expanding our free cash flow.”
Once the deal is finalized, Windstream will have approximately 3.4 million access lines and 744,000 broadband customers, the company said.
Windstream (NYSE: WIN) was formed in 2006 when Alltel spun off its local telephone division and generates more than $3.2 billion in revenues.