February 6, 2012 Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) announced today that it has entered into a definitive agreement to acquire SureWest Communications (Nasdaq: SURW) in a cash and stock merger valued at $23 per share, or approximately $340.9 million.
SureWest Communications, based in Roseville, California, is a leading integrated communications provider and broadband leader in the markets it serves. Headquartered in Northern California for more than 95 years, SureWest Communications offers bundled residential and commercial services in the greater Roseville, Sacramento and Kansas City regions that include IP-based digital and high-definition television, high-speed Internet, Voice over IP, and local and long distance telephone. With roots similar to Consolidated Communications, SureWest started as a rural provider of telephone service in 1914 and has evolved into a leading provider of high-quality telecommunications and broadband services with about 800 employees and approximately 282,000 connections.
Bob Currey, Consolidated Communications’ President and Chief Executive Officer, said the acquisition would complement Consolidated’s operations in Illinois, Pennsylvania and Texas, and the company will benefit from increased size, scale and geographic diversity, creating a broader platform to more effectively compete. “SureWest has built one of the highest quality networks in the industry and transformed itself into a leading broadband provider,” said Currey. “We believe this acquisition strengthens our company and will have an overall positive impact on our business.”
“Both Consolidated and SureWest have a long history of delivering the highest quality products and services to their customers,” said Steve Oldham, President and Chief Executive Officer. “We believe that by creating scale and combining our proven capabilities in delivering leading edge digital TV and broadband services we create a stronger company with additional growth opportunities. The transaction creates a financially strong company and provides long-term value to our customers and shareholders.”
The SureWest acquisition is the latest move by Consolidated Communications and follows the acquisitions of TXU Communications in 2004 and North Pittsburgh Systems, Inc. in 2007. The sale is expected to close by end of 2012, subject to certain customary conditions, including approvals from federal and California regulators.