Deal In Brief
Nov 06, 2009 (Datamonitor Financial Deals Tracker via COMTEX News Network) -- AT&T, Inc., a telecommunication services company, has acquired Centennial Communications Corp., a provider of wireless and wired communications services. Both the companies are based in the US.
Update on October 13, 2009:
AT&T has received clearance from the Department of Justice to acquire Centennial.
The Department has entered into a consent decree with AT&T and Centennial that allows the acquisition to proceed, while requiring that AT&T divest Centennial's operations in eight service areas in Louisiana and Mississippi. The eight service areas are Alexandria, La., Lafayette, La., LA-3 (DeSoto), LA-5 (Beauregard), LA-6 (Iberville), LA-7 (West Feliciana), MS-8 (Claiborne) and MS-9 (Copiah).
Update on February 24, 2009:
The shareholders of Centennial have approved the company's proposed acquisition by AT&T.
Of the shares voted, over 99% were cast in favor of adoption of the transaction, representing approximately 88% of the total shares outstanding and entitled to vote.
Announcement (November 7, 2008):
AT&T has agreed to acquire Centennial for $944 million in cash.
Under the terms of the agreement, Centennial stockholders will receive $8.50 per share in cash. Including net debt, the total enterprise value is approximately $2,800 million.
Private equity firm Welsh, Carson, Anderson & Stowe, Centennial's largest stockholder, has agreed to vote in support of the transaction.
AT&T expects to obtain approvals by the end of the second quarter of 2009.
Sullivan & Cromwell LLP is acting as legal advisor to AT&T. Barclays Capital and Evercore Partners are acting as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Centennial.
Deal Value (US$ Million) 944
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Completed: 2009-11-06
Deal Participants
Target (Company) Centennial Communications Corp.
Acquirer (Company) AT&T, Inc. (formerly SBC Communications, Inc.)
Vendor (Company) Undisclosed Vendors
Deal Rationale
The transaction will enhance AT&T's wireless coverage for customers in rural areas of the midwest and southeast US, Puerto Rico, and the US Virgin Islands. Through the acquisition of Centennial's wired network in Puerto Rico, AT&T will also be able to better serve its business customers who operate there. The acquisition offers opportunities for synergies in areas including corporate overhead, advertising, customer care, and network operations.
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