In what is no doubt the single-largest transaction in the history of the U.S. paging industry, Arch Communications Group Inc. and MobileMedia Corp. confirmed they have completed a definitive merger agreement under which Arch will acquire MobileMedia for a combination of cash, stock and the assumption of certain liabilities.
The deal creates the second-largest paging carrier in the country, with about 7.5 million subscribers and more than US$815 million in net revenues on a pro forma basis. The deal is expected to close in the first quarter of 1999.
“The scope of the company changes dramatically. Now, we have local, regional and national paging coverage in all 50 states,” said Ed Baker, chairman and CEO of Arch. “I think it’s good for Arch and MobileMedia, but it’s also good for the entire paging and messaging sector.”
The transaction will relieve MobileMedia’s US$649 million responsibility to its secured debt holders and the US$480 million owed its unsecured creditors.