Cumulus Media ( CMLS), the owner of the second-highest number of U.S. radio stations, joined with a group of buyout firms to acquire the radio broadcasting business of Susquehanna Pfaltzgraff for $1.2 billion.

Susquehanna Radio is privately owned and has 33 stations in eight markets, including San Francisco, Dallas and Indianapolis.

Cumulus, based in Atlanta, is creating Cumulus Media Partners with Bain Capital, Blackstone Group and Thomas H. Lee Partners to buy the Susquehanna operation. Cumulus will initially own about 25% of Cumulus Media Partners, but that could increase to up to roughly 40%.

The acquisition should close in the first half of 2006. Shares of Cumulus were gaining $1.39, or 12.7%, to $12.33.

Separately Monday, Susquehanna Pfaltzgraff agreed to sell the rest of cable outfit Susquehanna Communications to Comcast ( CMCSA).

More from Stocks

Jim Cramer Weighs In on Intel CEO Resignation

Jim Cramer Weighs In on Intel CEO Resignation

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Jim Cramer: I Think Deregulation Will Produce Very Good Earnings for Banks

Jim Cramer: I Think Deregulation Will Produce Very Good Earnings for Banks

Proctor & Gamble Worth 40% More Broken Up?

Proctor & Gamble Worth 40% More Broken Up?

Jim Cramer on Micron: Listen to the Conference Call

Jim Cramer on Micron: Listen to the Conference Call