NEW YORK-Price Communications Corp. reached a definitive agreement to sell the Fort Myers, Fla., metropolitan statistical area that it acquired during its recent purchase of Palmer Wireless Inc.
Wireless One Network L.P., which owns three rural service areas surrounding Fort Myers, plans to purchase the MSA for $168 million. The area includes approximately 382,000 of Palmer’s 3.9 million pops.
“I believe that the considerably higher price paid by Wireless One was caused by the fact that Fort Myers is a `hole in their donut’ since they surround the area with three excellently run RSAs,” said Bob Price, president of Price Communications. “Their purchase price of $168 million results in a profit for us and reduces our purchase multiple on this transaction. It will substantially de-leverage our financing for the Palmer Wireless transaction.”
Both the sale of the MSA and Price’s acquisition of Palmer are pending Federal Communications Commission approval.