Consolidated buys SureWest for USD 341 mln

US fixed-line operators Consolidated Communications and SureWest have agreed to a merger. Consolidated will acquire SureWest for USD 23 per share in cash or stock, or a total USD 340.9 million excluding debt. This is a 47 percent premium on SureWest's last share price. The combined company will have operations in six states and 1,775 employees, with pro forma revenues of USD 620 million for the twelve months ending 30 September 2011. SureWest serves 130,000 residential subscribers and 15,700 commercial businesses in the greater Kansas City and Sacramento regions over its own fibre networks, which pass in total 321,700 homes. Consolidated offers voice, data and video services to residential and business customers in Illinois, Pennsylvania and Texas. Consolidated said the deal will combine its own strong cash flow with SureWest's growth strategy in fibre services. The transaction is expected to generate annual operating synergies of USD 25 million and capex savings of USD 5-10 million by the end of the first full year of the combination. The deal remains subject to shareholder and regulatory approval.