Consolidated Communications to expand service with acquisition of North Pittsburgh Systems

By Lisa Kerner

Charlotte, N.C., Dec. 31 - Consolidated Communications Holdings, Inc. completed its acquisition of North Pittsburgh Systems, Inc. for some $362.6 million.

The acquired company will operate in Pennsylvania under the Consolidated Communications brand name.

Under the merger agreement, North Pittsburgh shareholders could elect to receive either $25 in cash, without interest, or 1.1061947 shares of Consolidated common stock for each share of North Pittsburgh common stock, subject to proration.

Of the some 15 million shares of North Pittsburgh common stock outstanding immediately prior to closing the merger, holders of:

• 13,378,590 shares, or 89.2%, elected to receive cash;

• 1,361,806 shares, or 9.1%, elected to receive stock; and

• 264,604 shares, or 1.8%, did not make an effective election.

"We have said from the start that North Pittsburgh has a strong network that, when coupled with Consolidated's back office platforms and technical experience, can be leveraged to roll out enhanced broadband services," Consolidated president and chief executive officer Bob Currey said in a company news release.

"We plan to launch our IPTV product in the North Pittsburgh area in the first quarter of 2008 and expect to pass approximately 12,000 homes at that time. By the end of 2008, we anticipate passing a total of approximately 34,000 homes," Currey added.

North Pittsburgh is a telecommunications provider based in Gibsonia, Pa.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.