DENVER, United States-Arch Communications Group won the battle to acquire MobileMedia Communications, following approval by a U.S. bankruptcy court. The combination of MobileMedia and Arch will create the second-largest paging carrier in the United States, with about 7.3 million paging subscribers.
MobileMedia’s third amended plan of reorganization, which details the process of the merger, was approved by the court in mid-April. The merger is expected to close in early June, at which time MobileMedia will emerge from Chapter 11 bankruptcy protection, which it entered in January 1997.
“I think it’s an excellent fit,” said Joseph Bondi, MobileMedia chairman of restructuring. “Arch has strength in numerous markets where MobileMedia is not as strong and vice versa. I think each company will benefit from the knowledge of the other.”
In particular, Bondi said Arch provides low-cost service to the consumer segment, whereas MobileMedia is more concerned with larger, nationwide corporate accounts.
A competing organization plan, suggesting that MobileMedia merge with TSR Wireless, was withdrawn by TSR the Friday before the hearing, about a week after it was filed.
