CenturyTel, Inc. (NYSE:CTL) has decided to acquire Qwest Communications International (NYSE:Q) for $10.6 billion through a stock-swap arrangement. CenturyTel will assume $11.8 billion in net debt too. This gives Qwest an enterprise value of $22.4 billion.
Between the two companies, they are operating in 37 states and have about 5 million broadband customers. They also have 17 million access lines, about 1.4 million video subscribers, and about 850,000 wireless clients. The companies expect to save about $625 million within 3-5 years after the deal closes.
In 2008 CenturyTel purchased Embarq, a landline services spinoff of Sprint Nextel. Barclays Capital, Evercore Partners, and J.P. Morgan Securities worked as the financial advisers. [NYT]