McLean, Virginia-based long distance telecommunications carrier LCI International Inc has agreed to acquire USLD Communications Corp, the San Antonio, Texas-based firm which recently changed its name from US Long Distance Corp, for around $331m. The combination will result in a company with combined revenues of over $1.6bn in 1997. Under the terms of the agreement, LCI will exchange a fraction of one share of LCI Common stock for each of USLD’s 16,590,3336 outstanding shares of common stock. The fraction will have a value of $20, and depend on the average price of LCI stock for the 20 trading days ending three days before the merger. It will be accounted for as a pooling of interests. The deal gives LCI a presence in the US West and South East, and also fits in well with LCI’s announced intention to build a fiber network interconnecting its existing network throughout the south west to the west coast. The combined companies will own over 180 million circuit miles of digital fiber-optic capacity in the US, with construction underway to add over 140 million miles more by early 1998.
Content from our partners
