Regional US telecoms provider Shenandoah Telecommunications Company (Shentel) has agreed to acquire rival operator NTELOS Holdings (nTelos) in an all-cash transaction valued at approximately USD640 million, including net debt. nTelos stockholders will receive approximately USD208 million in cash, or USD9.25 per share, while Shentel will assume nTelos’ adjusted net debt of approximately USD431 million as of 30 June 2015. The previously announced shut down of commercial operations in nTelos’ Eastern Markets will continue as planned, and is expected to be completed by 15 November. Shentel will finance the acquisition with a new, expanded credit facility. The transaction is expected to close in early 2016.
Meanwhile, concurrent to the merger agreement, Shentel has entered into a series of agreements with Sprint Corp, including the expansion of Shentel’s ‘affiliate’ relationship with Sprint. Among other things, this will result in the nTelos brand being discontinued after closing and the cellco’s approximately 297,500 wireless retail customers becoming Sprint-branded customers.
Rod Dir, CEO of NTELOS Holdings, commented: ‘We view the acquisition as a combination between two great companies, both of which have strong roots in our local communities. We believe our customers will see a seamless transition to the Sprint platform used by Shentel and will greatly benefit from Shentel’s strong track record of providing reliable wireless service through its expanded and extended affiliate relationship with Sprint’.