AT&T to acquire Glen Allen company for $1.6 billion

Telecom giant AT&T on Monday entered into a definitive merger agreement to acquire a Glen Allen-based company. Straight Path Communications, Inc., located on Nuckols Road in Henrico County, will be purchased for $95.63 per share in an all-stock merger valued at $1.25 billion. The transaction, which will total $1.6 billion when liabilities are factored in, was approved by the directors of both companies’ boards.

The price includes a $15 million settlement Straight Path must pay to the Federal Communications Commission to settle allegations it used false data to renew rights to its owned wireless spectrum, which the federal agency regulates.

The purchase is a strategic one, as Straight Path is one of the largest holders of 28 GHz and 39 GHz wave spectrum, which wireless carriers use to deliver voice and data services to their customers. AT&T is expected to use this spectrum of the airwaves to build out a new fifth generation–or 5G–network capable of providing increased bandwidth for data-hungry customers and much faster download speeds.

Straight Path Communications was founded in 2013.

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