Citizens Communications

(CZN)

reached a pact to buy

Commonwealth Telephone Enterprises

(CTCO)

for $1.16 billion.

The cash-and-stock deal values Commonwealth at $41.72 a share. Each Commonwealth share will be acquired for $31.31 in cash and 0.768 shares of Citizens.

Citizens is paying a 17% premium to Commonwealth's closing share price of $35.60 on Sept. 8, the day before Commonwealth said it was exploring strategic options.

Shares of Citizens were down 4 cents at $13.51 Monday. Commonwealth was up $1.71, or 4.4%, to $40.23.