SuperMedia and Dex One to merge
Dex One and SuperMedia are to combine their operations.
SuperMedia and Dex One Corporation have revealed contract negotiations and business discussions between the boards of directors in both companies have resulted in a definitive merger agreement being approved.
This will result in both brands merging together in a stock-for-stock transaction, creating a mobile, local and social marketing solutions provider.
When the transaction takes place, the combined firm will have more than 5,800 members of staff and its team of over 3,100 consultants will work to maintain relationships with at least 700,000 firms.
SuperMedia shareholders are forecast to own around 40 per cent of the combined enterprise, with Dex One shareholders possessing the remaining 60 per cent.
It is estimated that the combined enterprise will realise cost synergies of between $150 million and $175 million (£95 million to £111 million) by 2015.
"By joining together, we will have nationwide presence to increase market share and achieve operating and service efficiencies," SuperMedia president and chief executive officer Peter McDonald said.
Posted by David Gleck
Source: Joint press release, August 21st