Birch Communications To Acquire Cbeyond For About $323 Mln In Cash - Quick Facts

(RTTNews) - Birch Communications Inc., a provider of business focused communications, cloud and managed services based in Atlanta, and Cbeyond Inc. (CBEY) announced Monday that they entered into a definitive agreement by which Birch will acquire Cbeyond in an all-cash transaction valued at about $323 million.

The companies said that Cbeyond stockholders will receive between $9.97 and $10.00 per share in cash. The exact amount will be determined based on stock transactions relating to previously granted stock awards to employees that occur after execution of the definitive agreement.

At $9.97 per share, the purchase price represents a premium of 56.8% over Cbeyond's stock price on November 5, 2013, the trading date before Cbeyond announced its process to explore strategic alternatives, and a premium of 40.8% over the closing price of Cbeyond's stock on Thursday April 17, 2014.

The transaction has been unanimously approved by the boards of directors of both companies.

The transaction is expected to close within six months, subject to customary conditions, including necessary approvals from federal and state regulators and the Cbeyond stockholders.