­AT&T has announced that it is buying regional mobile phone operator, Centennial Communications for $944 million in cash. The company said that the transaction will enhance AT&T’s wireless coverage for customers in largely rural areas of the Midwest and Southeast United States and in Puerto Rico and the U.S. Virgin Islands.

 Including net debt, the total enterprise value is approximately $2.8 billion.

“Mobility is a vital investment area for AT&T and our company’s biggest growth driver,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility and Consumer Markets. “This transaction enhances network coverage for our consumer and business customers and is expected to create long-term value for AT&T’s stockholders.”

The addition of Centennial’s 850 MHz spectrum should also improve service quality for AT&T customers in parts of Indiana, Louisiana, Michigan, Mississippi, Ohio and Texas.

Centennial also provides switched voice and high-capacity data and Internet Protocol solutions for business customers in Puerto Rico. The transaction gives AT&T a network presence in Puerto Rico and will allow the company to better serve its multinational business customers with a presence in this U.S. territory.

The acquisition is subject to regulatory approval, the approval of Centennial’s stockholders and other customary closing conditions. Welsh, Carson, Anderson & Stowe, Centennial’s largest stockholder, has agreed to vote in support of this transaction. AT&T is working to obtain approvals by the end of the second quarter of 2009.

Source:Cellular-news