Thursday, November 6, 2008

AT&T to acquire Centennial for Rural Wireless Coverage

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.com

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