By Lisa Kerner
Charlotte, N.C., Nov. 10 - AT&T Inc. said it will enhance wireless coverage for its customers in rural areas of the Midwest and Southeast United States, as well as in Puerto Rico and the U.S. Virgin Islands, with the acquisition of Centennial Communications Corp.
Under the companies' merger agreement, Centennial stockholders will receive $8.50 per share for a total equity price of $944 million, an AT&T news release said.
The total enterprise value of the transaction, including net debt, is approximately $2.8 billion.
AT&T said it expects minimal dilution to earnings per share and cash flow in the first year after the deal closes.
The acquisition is subject to stockholder and regulatory approvals, which AT&T plans to obtain by the end of the second quarter of 2009.
"Mobility is a vital investment area for AT&T and our company's biggest growth driver," Ralph de la Vega, president and chief executive officer of AT&T mobility and consumer markets, said in the release.
"This transaction enhances network coverage for our consumer and business customers and is expected to create long-term value for AT&T's stockholders."
AT&T is a Dallas-based communications holding company.
Centennial is a Wall, N.J., provider of regional wireless and integrated communications services in the United States and Puerto Rico. The company has approximately 1.1 million wireless subscribers and 596,700 access lines and equivalents.
| Acquirer: | AT&T Inc.
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| Target: | Centennial Communications Corp.
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| Announcement date: | Nov. 7
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| Transaction total: | $944 million
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| Price per share: | $8.50
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| Expected closing: | Upon approvals
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| Stock price for target: | Nasdaq: CYCL: $3.47 on Nov. 6
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