MATTOON — Mattoon-based Consolidated Communications has completed its acquisition of SureWest Communications, the company announced Monday.
As a result, Consolidated, which provides voice, data and video services to customers in Illinois, Pennsylvania and Texas, stands to gain SureWest customers in the Sacramento, Calif., area and the Kansas City areas of both Missouri and Kansas.
Consolidated CEO Bob Currey said the move unites Consolidated's "consistent cash flows" with SureWest's growth. The combined company will have "a diverse set of revenues and cash flows across multiple markets," he said.
SureWest had about 14.8 million shares of common stock and restricted stock units prior to the merger.
Owners of about 10.1 million of those shares elected to receive cash for their stock. They'll end up receiving cash for only about 66.9 percent of those shares and Consolidated stock for the remainder.
Owners of another 1.4 million shares elected to receive Consolidated stock and will do so. Owners of still another 2.4 million shares didn't indicate a preference, so they'll receive Consolidated stock.
The remaining SureWest shares were equity award shares, and the owners of those were entitled to receive cash.
Those receiving cash for shares will receive $23 per share. The entire deal was valued at about $324 million, exclusive of debt.