An Illinois-based broadband and business communications company has entered into an agreement to buy FairPoint Communications in a transaction worth $1.5 billion-dollars. The agreement and proposed merger have been approved by the boards of directors at Mattoon-based Consolidated Communications and at Charlotte, North Carolina-based FairPoint.
The deal is expected to close by mid-2017. Consolidated will assume FairPoint's debt. FairPoint reported a net debt of about $887 million as of Sept. 30. Bob Udell, Consolidated president and CEO, says the agreement combines two companies serving 24 states with extensive fiber networks and broadband solutions provider strategies.
FairPoint's largest network is in northern New England, where FairPoint said last month it was laying off at least 110 workers because of a downturn in its traditional telephone service.
