Telecommunications giant AT&T Corp. has agreed to acquire Vanguard Cellular Systems Inc., which operates cellular systems under the Cellular One name, for $850 million plus assumed debt of $600 million.
Vanguard, based in Greensboro, N.C., has more than a half million customers from Florida to New England.
Under the agreement, Basking Ridge, N.J.-based AT&T will exchange 0.3987 of one of its shares for each Vanguard share. Based on Friday’s AT&T stock closing price of $58.62, the deal values Vanguard at $23.37 a share–an 18 percent premium to Friday’s closing price of $19.87. Vanguard had 37.1 million shares outstanding as of June 30.
Vanguard’s move is spurred by competition from new technologies. That pressure impelled Centennial Cellular Corp. to sell itself in July for $2 billion to buyout firm Welsh, Carson Anderson & Stowe.
Vanguard also has been selling its interests in cellular operations in markets in Florida, South Carolina and North Carolina so it can concentrate operations in the Northeast.
