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CT Communications To Be Acquired

Published Wed, 2007-05-30 14:35

Windstream Corporation has entered into a definitive agreement to acquire all of the outstanding shares of CT Communications, Inc. (NASDAQ: CTCI) for $31.50 per share in cash, which represents a 31 percent premium to CT Communications’ previous 30-day trading average. Including the assumption of cash and debt, the transaction is valued at approximately $585 million.

The acquisition is expected to close in the second half of 2007, subject to certain conditions, including necessary approvals from federal and state regulators and CT Communications shareholders. Windstream intends to finance the acquisition with debt and existing cash while maintaining its strong balance sheet.

CT Communications generated $179.2 million of revenue, $57 million of operating income before depreciation and amortization (OIBDA) and $25.3 million of operating income in the twelve months ended March 31, 2007. Windstream estimates the transaction will be approximately 4.0 percent accretive to leveraged free cash flow, after synergies, in the first full year of operations.


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