NEW YORK (TheStreet) -- Shares of NTELOS (NTLS) were gaining 22.7% to $8.97 on heavy trading volume following the announcement that Shenandoah Telecommunications will acquire the telecommunications company in a transaction valued at about $640 million, including debt.
NTELOS shareholders will receive about $208 million, or $9.25 a share, in cash as part of the transaction. The deal represents about a 60% premium over the company's 30-day volume weighted average stock price as on August 7.
Shenandoah Telecommunications entered into an agreement with Sprint (S) at the same time. As part of the two agreements the nTelos carrier brand will be discontinued, and the approximately 297,500 customers will become Sprint customers.
About 1.7 million shares of NTELOS were traded by 9:52 a.m. Tuesday, above the company's average trading volume of about 671,000 shares a day.
The company is a regional provider of digital wireless communications services to consumers and businesses primarily in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky.