Charlotte-based phone, Internet provider to sell itself for $1.5 billion

Charlotte (NC)-based FairPoint Communications announced it is being purchased for $1.5 billion by an Illinois telecommunications company called Consolidated Communications. The deal has been unanimously approved by the boards of directors at both companies. The deal is expected to close by mid-2017. The combined company will keep the Consolidated Communications name, and it will be headquartered in Mattoon (IL).

Consolidated CEO Bob Udell will serve as president and CEO of the combined company, and one director from the FairPoint board will join Consolidated’s board of directors, the two companies said. FairPoint provides phone and Internet service in 17 states, with its largest network in northern New England. This past summer, FairPoint’s largest investor, New York-based Maglan Capital, said the company needed to consider selling itself because it had failed to maximize shareholder value.