Privately held provider Cavalier Telephone & TV said on Friday it is buying publicly traded Talk America Inc. for $251 million, or $8.10 per share. There was no word whether Cavalier would remain private or go public à la PAETECs transaction with US LEC.
The deal is slated to close in December. Talk America shareholders have yet to approve the deal. If it goes through, Talk Americas CEO, Ed Meyercord, will become head of Cavalier. Cavaliers current CEO, Brad Evans, will become executive chairman.
After the acquisition is completed, Cavalier will serve customers in six of the top 20 metropolitan services areas, including Atlanta, Baltimore, Cleveland, Detroit, Philadelphia and suburban Washington, D.C.
This merger will allow Cavalier to deploy our robust set of DSL and high-capacity products and services throughout Ohio, Georgia and Michigan, said Evans. Cavalier will also utilize its fiber-optic network infrastructure to deploy and support our triple play of voice, internet and video services throughout these newly acquired market areas, giving us millions of total homes passed, Evans said.
The company will be headquartered in Richmond, Va. Wachovia Bank N.A. has promised to finance the acquisition, Cavalier said in a news release.