CenturyTel, Embarq Complete Merger

CenturyTel, Inc. and Embarq Corporation reportedly have completed their merger, saying the combined company, which will be known as CenturyLink, will serve more than 2.1 million broadband customers, more than 440,000 video subscribers and approximately 7.5 million access lines in 33 states.

 

“The completion of this merger is a significant event for our customers, communities, investors and employees,” said Glen F. Post III, president and chief executive officer of the new entity.

 

He said that CenturyLink has the advanced networks, the people and the financial stability to deliver the reliable and innovative services that the company’s customers want and need.

 

“We look forward to this exciting new chapter in our company’s history,” Post said.

 

CenturyLink officials said that the company expects to generate annual full run-rate operating and capital synergies of approximately $400 million by 2011.

 

Based on this synergy level and operating results of the two companies for the 12 month-period that ended Dec. 31, 2008, CenturyTel (News - Alert) would have had combined revenue of more than $8 billion, combined operating cash flow of over $4.2 billion and combined free cash flow of approximately $1.9 billion.

 

While the company’s corporate identity will immediately change to CenturyLink, customer-facing operations and communications will continue under the CenturyTel and EMBARQ brand names until a full brand conversion occurs later this year.

 

The company intends to formally change its name to “CenturyLink, Inc.” upon receipt of shareholder approval, which it expects to solicit in May 2010.

 

CenturyLink is a provider of high-quality voice, broadband and video services over its advanced communications networks to consumers and businesses in 33 states.