A New Jersey company has agreed to acquire a majority stake in American Mobile Systems Inc., a Woodland Hills operator of mobile radio systems, for at least $50 million, American Mobile said.
Under the agreement, Nextel Communications Inc. of Rutherford, N.J., which says it is the second-largest operator of specialized mobile radio systems in the United States, will acquire at least a majority, and up to 61%, of American Mobile’s common stock at $7 per share, American Mobile said.
Nextel was formerly named Fleet Call Inc. The deal between the two companies formalizes a previously announced agreement.
American Mobile said Nextel will pay at least $20 million in cash. The purchase price is also expected to include mobile radio properties in Florida that Nextel owns or is in the process of acquiring.
The transaction is subject to the approval of American Mobile shareholders and various regulatory agencies. It is expected to close in early 1994.
Richard Somers, American Mobile chairman, said the deal with Nextel would “make the vision of advanced digital mobile communications services throughout Florida a reality.”
American Mobile also said that it and a joint venture partner plan to sell certain radio channels in Georgia and South Carolina, for which the company expects to receive $800,000 in cash.