YOU ARE AT:Archived ArticlesMTEL SIGNS AGREEMENT TO BUY U.S. PAGING CORP. IN STOCK-FOR-STOCK DEAL

MTEL SIGNS AGREEMENT TO BUY U.S. PAGING CORP. IN STOCK-FOR-STOCK DEAL

JACKSON, Miss.-Mobile Telecommunication Technologies Corp. said it has signed a definitive agreement to acquire United States Paging Corp. in a stock-for-stock transaction valued at about $35 million.

Headquartered in Wayne, N.J., U.S. Paging is a reseller of messaging services to major corporations. The company has relationships with more than 2,000 local paging companies, serving a customer base of about 80,000 paging subscribers.

Under terms of the agreement, U.S. Paging shareholders will receive 0.415 shares of Mtel common stock for each share of U.S. Paging stock. About 1.5 million shares of Mtel common stock will be issued in the transaction, Mtel said.

“This acquisition provides SkyTel (Corp.) with new distribution channels, 80,000 additional subscribers in corporate America, as well as local paging coverage that complements and expands our own local service offering,” said M. Bernard Puckett, president and chief operating officer of Mtel, and interim president of SkyTel.

Mtel also announced it will be initiating a transaction to acquire all of the outstanding shares of SkyTel held by parties that are not affiliated with Mtel in exchange for Mtel common stock. Mtel will issue about $58 million worth of common stock to complete this deal.

When it is finished, SkyTel will be a wholly owned subsidiary of Mtel. Mtel presently owns 90.3 percent of SkyTel.

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