Cumulus Jumps on Buyout - TheStreet

Cumulus Jumps on Buyout

Shares rise 35%.
Publish date:

Cumulus Media (CMLS) - Get Report jumped 35% after a group led by CEO Lewis Dickey and Merrill Lynch Global Private Equity agreed to buy the company for $11.75 a cash, or $508 million.

The deal offers shareholders of the Atlanta-based radio company a 40% premium to Friday's closing price.

"I am extremely pleased to be partnering with Merrill Lynch Global Private Equity in this transaction," said Dickey, who will continue as chairman, president and chief executive officer of the company after the merger. "This transaction represents an important chapter in our company's history. We strongly believe in this industry and in the long-term opportunities to grow the business. I look forward to working closely with our talented team and our new partners to build upon our success."

Shares rose $2.95 to $11.32.