Entercom Communications Corp. has an agreement to acquire Lincoln Financial Media from Lincoln Financial Group for $105 million plus working capital.
The deal is subject to regulatory approval and parties expect it to close in the second quarter of 2015.
Under the agreement, Entercom will get 15 radio stations in the Atlanta, Denver, Miami and San Diego markets; the deal means Entercom would own more than 130 stations.
Entercom President/CEO David Field calls the acquisition “a perfect fit” as it bolsters Entercom’s position in Denver and expands its footprint into Atlanta, Miami and San Diego with what he characterizes as “terrific brands that have significant growth potential.”
Field says Entercom welcomes the addition of Lincoln’s “outstanding brands and talented broadcasters.”
Lincoln Financial Group President/CEO Dennis Glass says the sale enables Lincoln to focus on growing its core business.
The $105 million purchase price will be paid $77.5 million in cash and $27.5 million in new perpetual cumulative convertible preferred stock that will be issued to Lincoln. Entercom expects to finance the cash portion of the purchase price through a combination of its existing $50 million revolver, cash on hand, and through other financing sources, if necessary.
Entercom anticipates operating the LFM stations under a time brokerage agreement starting in late January following a regulatory review of the transaction by the Justice Department. In order to comply with the FCC’s station ownership limitations, Entercom plans to divest one FM station in the Denver market.
