Citizens Utilities Acquires Flex Communications in $10 Million Stock Deal

Strategic Insights -

Citizens Utilities, a diversified service company, announced the acquisition of Flex Communications, a switched-based inter-exchange carrier, in a stock-for-stock transaction valued at approximately $10 million. The acquisition expands Citizens' long distance phone services to 5,500 customers in New York, providing a range of enhanced services and features. Daryl A. Ferguson, Citizens' president and chief operating officer, highlighted the deal's significance in allowing customers to have a single, simple voice for all their telecommunications needs.

Key Takeaways:

  • Citizens Utilities acquired Flex Communications in a stock-for-stock transaction valued at approximately $10 million.
  • Flex Communications provides long distance, 800-inbound long distance, voice mail, paging, cellular telephone, and private data networks to 5,500 customers in Albany, Syracuse, Johnstown, Norwich, and Middletown, N.Y.
  • The acquisition will be operated through Citizens Telecommunications, the long distance telephone subsidiary of Citizens Utilities.
  • Joseph Sullivan, vice president of Flex Communications, will become vice president, operations of Citizens Telecommunications.
  • Citizens Utilities provides telecommunications, natural gas distribution, electric distribution, and water and wastewater treatment services to 1.4 million customers in 18 states.
  • The company has a significant investment interest in Centennial Cellular Corp., a cellular telephone company, and owns Electric Lightwave, Inc., a competitive telecommunications services provider operating in five major cities in the western United States.
  • Daryl A. Ferguson emphasized the importance of providing customers with a local customer contact and a single, simple voice for all their telecommunications needs.

Statistics:

  • $10 million - the value of the stock-for-stock transaction.
  • 5,500 - the number of customers served by Flex Communications.
  • 18 - the number of states where Citizens Utilities provides services.
  • 1.4 million - the number of customers served by Citizens Utilities.
  • 5 major cities - the geographical area where Electric Lightwave, Inc. operates.

Sources:

  • Business Wire, "Citizens Utilities Announces Acquisition of Flex Communications," July 11, 1995
  • New York Times (reference not available in the original text; only Business Wire is mentioned)