Nexstar, Mission Broadcasting to buy 19 TV stations for $270 million
(Reuters) - Nexstar Broadcasting Group and Mission Broadcasting Inc said they would buy privately held Communications Corporation of America and White Knight Broadcasting for $270 million.
The deal involves 19 television stations in Louisiana and Texas, out of which Nexstar will acquire 11 stations that belong to Communications Corporation of America while Mission Broadcasting will acquire the rest.
Nexstar said the deal would boost the number of stations it owns, operates or provides sales and services to 91, reaching about 13.9 percent of U.S. television households in 48 markets.
The company said the stations would immediately add to its earnings and contribute about $100 million to its revenue in 2014.
Houlihan Lokey acted as CCA's financial adviser for the deal, which is expected to close in the fourth quarter.
Shares of Irving, Texas-based Nexstar were up 5 percent in extended trade. It closed at $22.45 on Wednesday on the Nasdaq.
(Reporting By Aurindom Mukherjee in Bangalore)