The company said it will acquire Rare Medium using newly issued Motient stock, shares of
XM Satellite Radio
stock owned by Motient and $13 million cash.
Following the transaction, a $25 million loan to Motient by Rare Medium will be absorbed, and Motient will repay about $34 million in bank debt.
The combined company is expected to have service revenue in excess of $100 million.
Rare Medium was up 1.7%.