In a joint statement, Nexstar Broadcasting Group and Mission Broadcasting Inc have agreed to purchase for the sum of US$270 million Communications Corporation of America and White Knight Broadcasting.
The deal includes nineteen television stations between Louisiana and Texas. Eleven of those stations would be acquired by Nexstar from Communications Corp. Mission Broadcasting would be acquiring the other eight stations.
The deal, according to Nexstar, would significantly increase the number of television stations that the company owns, operates or provides sales and services to. The total number is now at 91 and this has a potential reach to about 13.9% of US television households across 48 markets.
Nexstar further added that these acquired television stations would immediately impact earnngs, contributing a projected US$100 million to forecasted 2014 earnings. The share values of Nexstar jumped 5% closing at US$22.45 at Nasdaq's closing last Wednesday.
CCA's financial adviser in the transaction was Houlihan Lokey. The deal is expected to be completed by the end of 2013.
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