Century acquires Pacific Telecom
The recent string of blockbuster telecom acquisition announcements continued this week as Century Telephone Enterprises Inc. signed a definitive purchase agreement with PacifiCorp June 13 to acquire the stock of PacifiCorp’s wholly owned telecommunications subsidiary, Pacific Telecom Inc. The deal, subject to regulatory and shareholder approval, would make Century the nation’s 12th-largest local exchange carrier, based on access lines, and the 10th-largest cellular company, based on pops.
Century will pay PacifiCorp $1.52 billion in cash and assume PTI’s debt, at closing estimated at $700 million, including $232 million associated with pending PTI acquisitions.
“The price is attractive and the markets being acquired possess strong growth potential,” said Century President and Chief Executive Officer Glen F. Post III. “This acquisition allows Century to significantly expand our market presence and helps move us closer to our vision of becoming the leading provider of integrated communication services to rural America.”
Upon completion of the deal, Century’s projected revenues will approach $1.4 billion, with cellular ownership increasing 24 percent to approximately 9.9 million pops, and personal communications services ownership doubling to 8 million-plus pops.
