Metrocall Inc. said Monday it will buy ProNet Inc. of Dallas for about $243.8 million in stock and assumed debt, creating the largest U.S. paging company behind Paging Network Inc.
Alexandria-based Metrocall will pay $73.8 million and assume $170 million in debt. The offer values ProNet shares at $5.40 each, below Friday’s close of $6.
The acquisition is the latest in the paging industry, as companies try to bulk up to compete against PageNet, which has more than 10 million customers. Metrocall will have more than 4 million customers when the acquisition is completed late this year.
“This gives Metrocall greater scale and puts them in a stronger position to compete with PageNet,” said J.P. Mark, an analyst at Rauscher Pierce Refsnes.
“The larger the player, the more opportunities there are.”
News of the acquisition may have leaked out, analysts said, citing the 28 percent rise in ProNet shares last week.
