Feb. 26 (Bloomberg) -- Telephone and Data Systems Inc., a wireless and broadband provider serving 36 states, agreed to acquire the regional cable company Baja Broadband LLC for $267.5 million.
The transaction is expected to close in the third quarter, TDS said today in a statement. Baja, which has about 285 employees, posted sales of $82.4 million last year, TDS said.
Baja, a provider of television, broadband and phone service, will let TDS add residential and commercial customers in Colorado, New Mexico, Texas and Utah. Baja was connected to about 212,000 homes as of Dec. 31.
“Baja’s strong network capabilities will enable us to deliver highly competitive data services, while reducing the need for future capital investment,” TDS Chief Executive Officer David Wittwer said in the statement.
Shares of Chicago-based TDS fell 7.9 percent to $23.36 in New York. The stock has climbed 5.5 percent this year.
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