AT&T announced plans to acquire Centennial, a regional provider of wireless and wired communications services, for $944 million in cash. Under terms of the agreement, Centennial stockholders will receive $8.50 per share for a total equity price of $944 million. Including net debt, the total enterprise value is approximately $2.8 billion.
Centennial has 1.1 million wireless subscribers and serves largely rural areas of the Midwest and Southeast United States and in Puerto Rico and the U.S. Virgin Islands.
AT&T said the Centennial acquisition demonstrates its commitment to continuously enhance network quality and coverage for its wireless customers. The addition of Centennial’s high-quality 850 MHz spectrum will improve service quality for AT&T customers in parts of Indiana, Louisiana, Michigan, Mississippi, Ohio and Texas. Centennial also provides switched voice and high-capacity data and IP solutions for business customers in Puerto Rico.
For Centennial, the deal provides its customers with better access to the AT&T network and its product portfolio, including the iPhone 3G and the BlackBerry Bold.
“Mobility is a vital investment area for AT&T and our company’s biggest growth driver,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility and Consumer Markets. “This transaction enhances network coverage for our consumer and business customers and is expected to create long-term value for AT&T’s stockholders.http://www.att.comhttp://www.centennialwireless.com
