Radio broadcaster Cumulus Media (CMLS) said today it has agreed to acquire Citadel Broadcasting Corporation for $37 per share in cash and stock.
The purchase values Citadel at $2.4 billion.
Citadel owns and operates 225 radio stations in more than 50 markets, and operates the Citadel Media business, which is among the largest radio networks in the U.S.
Cumulus had previously said it would acquire the remaining equity interests of Cumulus Media Partners it did not already own, and said it plans to refinance all outstanding debt of Cumulus, Citadel, and Cumulus Media Partners.
Cumulus has obtained commitments for $500 million in equity financing from Crestview Partners and Macquarie Capital, and commitments from a bank group for more than $2.5 billion in senior secured credit facilities and $500 million in senior note bridge financing.
The Cumulus-Citadel merger will create a company with 572 radio stations in 120 markets, including 8 of the top 10.
Cumulus said the merger will be accretive to its adjusted EBITDA trading multiple.
Cumulus expects to close the transaction by the end of 2011.
Many of the radio broadcasters are now private. Westwood One (WWON) and Sirius XM (NASDAQ:SIRI) are a few exceptions.
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