An investor group led by Lew Dickey and a private equity group will buy Cumulus Media Inc., the country’s second-largest station group by station count.
The announcement was made by Dickey, who is the company’s chairman, and Merrill Lynch Global Private Equity. The agreement is valued at $1.3 billion.
Cumulus stockholders will receive $11.75 for each share of common stock, which the company says is a premium of about 40%. The Cumulus board approved the merger; stockholders must yet do so.
Dickey will continue as chairman, president and CEO. The company hopes the deal will be completed early next year. Helping with financing is Lew Dickey’s brother John, members of the family and Merrill Lynch Global Private Equity.
Cumulus has 344 radio stations in 67 markets.