Metrocall Inc is buying ProNet Inc for around $243m in a merger which will create the second largest paging company in the US with around four million subscribers. The move creates a serious challenge to PageNet, the market leader with 10 million customers whose dominance of the sector has led to a flurry of alliances. Under the terms of the deal, Metrocall will issue 0.9 of its own shares for each share of ProNet common stock and three ProtNet directors, including chairman and chief executive Jackie Kimsey will join the Metrocall board. ProNet, based in Dallas, Texas, operates out of five regional hubs and has around 1.4 million paging units in service. Metrocall, based in Alexandria, Virginia has been expanding rapidly and acquired 1.1 million new subscribers over the past year through mergers and acquisitions. William Collins, president and chief executive of Metrocall, said: The merger creates an industry leader in the ever- expanding world of wireless communications that will have a significant market share in many major metropolitan markets.
