Consolidated will acquire all outstanding shares of SureWest in a cash and stock transaction. Under the terms of the agreement SureWest’s shareholders will be given the option to exchange each share of SureWest stock for $23, or the equivalent in Consolidated common stock.
The merger will enhance Consolidated’s scale, expanding its operations to six states, and giving it a workforce of 1,775. Consolidated claims that the merger will also provide it with a platform for growth through the diversifications of revenue and cash flow across multiple customers segments and regions.
Bob Currey, Consolidated's president and CEO said: "SureWest has built one of the highest quality networks in the industry and transformed itself into a leading broadband provider. The combined company will create a broader platform from which to expand our products and services to meet the demands of our customers. We look forward to working with the SureWest employees to grow the business."
The deal is subject to federal and state regulatory approval and the approval by both Consolidated and SureWest shareholders.
Following the acquisition announcement, the Law Offices of Howard G. Smith has said that it is investigating potential claims that the SureWest board of directors breached their fiduciary duties to stockholders by failing to adequately shop the company, and failing to disclose all material information to shareholders about the transaction.
SureWest has approximately 130,000 residential subscribers and 15,700 commercial business customers in the greater Kansas City and Sacramento regions. Consolidated has 466,426 total connections across voice, data and video services, according to its third quarter financial report. The company operates in Illinois Pennsylvania and Texas.
