Consolidated Communications Holdings, Inc. (CNSL) on Monday revealed a definitive agreement to acquire North Pittsburgh Systems, Inc. (NPSI) for $25 per share in a taxable cash and stock transaction with a total consideration of $375.1 million, based on Consolidated's June 29, 2007 closing price. The company stated that it expects operating synergies of approximately $7 million in 2008, and $11 million in 2009. Capital synergies are estimated at approximately $3.0 million in 2008 and $6.0 million in 2009 and beyond, the company noted. In addition, Consolidated estimates the transaction to be accretive to cash flow by approximately 6%, after synergies, in the first full year of operations.
The company further disclosed that it intends to finance the cash portion of the purchase price with debt and cash on hand, and that it has obtained a commitment for the financing necessary to complete the transaction from Wachovia Bank.
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