RCN to acquire Neon Communications for $260 mln

June 25 (Reuters) - U.S. cable operator RCN Corp. (RCNI.O) said it agreed to acquire wholesale communications provider Neon Communications Group Inc. NGI.A for about $260 million, or $5.25 per share, in cash.

The deal, which is expected to close during the fourth quarter, is expected to be funded with $250 million of debt financing and the remaining from existing cash reserves, the company said in a statement. (Reporting by Tenzin Pema in Bangalore)