(RTTNews) - Friday, telecom giant AT&T, Inc. (T: News ) reported that it has completed the acquisition of Centennial Communications Corp. (CYCL: News ). The company said that the acquisition will increase AT&T's network coverage across the Midwest and Southeast United States as well as in Puerto Rico and the U.S. Virgin Islands.

AT&T, which plans to integrate Centennial's networks and products with its own networks and product portfolio, said that the acquisition of New Jersey-based Centennial will enable synergies in areas such as corporate functions, advertising, customer care and network operations. AT&T expects upfront integration costs to result in minimal dilution to earnings per share and cash flow in 2009.

AT&T said that Centennial stockholders will receive $8.50 per share in cash. Including net debt, the transaction is valued at $2.7 billion. AT&T said that it will take prompt actions to redeem all of Centennial's outstanding debt under its indentures and credit agreement.

The combination of the two companies' wireless networks will allow AT&T to deliver wider wireless coverage, including to approximately 893,000 former Centennial wireless subscribers. With the addition of Centennial, AT&T is also expanding its wired network coverage to Puerto Rico, enhancing service for its business customers with operations there, the company said.

According to Ralph de la Vega, president and chief executive officer of AT&T Mobility and Consumer Markets, "The addition of Centennial will enhance AT&T's assets in wireless - a strategic priority and one of our biggest growth drivers - and service for customers of both companies."
The company said that in the mainland U.S., it will move quickly to rebrand Centennial as AT&T and make AT&T's products and services available to Centennial's customers. The company estimates that by late January 2010, it's products and services will be available at more than 100 Centennial retail locations.

In Puerto Rico, the Centennial brand will continue through mid-2010 and AT&T will honor the current rate plans and contracts of Centennial wireless subscribers. AT&T said that it expects to make the full portfolio of AT&T products and services available in Centennial locations in Puerto Rico in the third quarter of 2010, at which point, Centennial customers will be able to migrate to AT&T rate plans without activation or upgrade fees. Existing AT&T customer contracts in Puerto Rico will not change, it added.

AT&T said that prior to the transition, it plans to deploy 3G at more than 200 sites in Centennial's markets to provide the best experience possible for Centennial customers who choose to migrate to AT&T service. The deployment involves adding 3G capabilities at more than 100 sites and expanding 3G coverage and capacity at approximately 100 sites.

To receive FREE breaking news email alerts for AT&T Inc. and others in your portfolio

 1   2   Next Page