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December 6, 2016

FairPoint to be sold for $1.5B

File Photo / Tim Greenway
File Photo / Tim Greenway
Mike Reed, FairPoint Communications' Maine state president.

An Illinois telecom provider, Consolidated Communications, offered to buy FairPoint Communications for $1.5 billion on Monday.

FairPoint Communications (NASDAQ: FRP), which is based in Charlotte, N.C., offers phone and internet service in 17 states, including in Maine. The company has 2,600 employees nationwide, including 40 in its national headquarters, the Charlotte Observer reported.

The deal would include assumption of FairPoint's debt, an estimated $887 million.

If approved by shareholders, the deal would close by mid-year 2017.

FairPoint's largest investor, Maglan Capital, had pushed for the sale, the Observer reported.

Consolidated Communications Holdings Inc. (NASDAQ: CNSL) is based in Mattoon, Ill. With the acquisition, Consolidated Communications, as the company would be known, would operate in 24 states and be based in Mattoon.

"This transaction combines two companies with extensive fiber networks and complementary strategies focusing on being the leading business and broadband solutions provider," Bob Udell, president and CEO of Consolidated Communications, said in the company's announcement. He will serve as president and CEO of the combined company.

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