GLEN ALLEN, VA (WWBT) - Henrico-based Straight Path Communications announced this week that it is being purchased by AT&T for $1.6 billion.
Straight Path, which is located on Hickory Park Drive in Glen Allen, leases wireless spectrum licenses and "is developing next generation wireless technology."
The Board of Directors at both companies approved the merger and "brings Straight Path's previously announced strategic alternatives process to a conclusion and maximizes Straight Path shareholder value," Straight Path said in a news release.
Straight Path shareholders will receive $95.63 per share, which will be paid using AT&T stock.
"The merger of AT&T and Straight Path Communications marks a vital point for us," said Straight Path Communications CEO Davidi Jonas. "Importantly, this merger provides Straight Path shareholders with a compelling return since Straight Path's spin-off to become an independent public company in 2013, with an initial price per share of $6.40 on July 31, 2013."
Click here for more information about the merger.
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