Broadcasting company Gray Television on Monday said it will acquire privately held Raycom Media in a cash-and-stock deal valued at $3.65 billion.
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The transaction will consist of $2.85 billion in cash, $650 million in a new series of preferred stock, and 11.5 million shares of Gray common stock, the companies said.
The combined company will have 142 full-power television stations serving 92 markets, the third largest portfolio of stations and markets in the United States, Gray said in a statement.
Gray has a market valuation of about $1.1 billion.
Raycom President and CEO Pat LaPlatney will become Gray’s president and co-chief executive officer, and current Gray CEO Hilton Howell will become executive chairman and co-chief executive officer after the deal closes.
Wells Fargo Securities served as financial adviser and Cooley LLP and Jones Day served as legal counsel for Gray.
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Stonebridge Capital served as financial adviser and Robinson Bradshaw and Covington & Burling served as legal counsel for Raycom.
The transaction is expected to close in the fourth quarter of 2018.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Shailesh Kuber)
