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Consolidated Communications to buy FairPoint in $1.5 billion deal

Staff Writer |
Consolidated Communications will buy FairPoint Communications in an all-stock deal valued at $1.5 billion, including debt.

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Under terms of the deal, FairPoint shareholders will receive 0.7300 Consolidated shares for each FairPoint share they own.

Based on Friday's closing prices, that values FairPoint shares at $20.72, or a 22% premium and implied a market value for FairPoint of $560.9 million.

The deal, which is expected to close by mid 2017, is expected to generate annual synergies of $55 million, and should added to cash flow per share in the first year.

"The financial benefits associated with the combination in the form of synergies and reduced leverage provide us additional operating and strategic flexibility going forward," said Consolidated CEO Bob Udell.

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