WASHINGTON — Glen Allen, Virginia-based Straight Path Communications Inc., a small company which holds FCC wireless spectrum licenses, will be acquired by AT&T in an all-stock deal valued at $1.6 billion.
Straight Path stock jumped by up to 150 percent on news of the acquisition.
The acquisition price, for $95.63 per share in AT&T stock, is a 162 percent premium to Straight Path’s stock closing price April 7.
Straight Path holds a portfolio of 39 GHz and 28 GHz wireless spectrum licenses — frequencies the Federal Communications Commission has approved for use on next- generation 5G wireless services.
The Straight Path acquisition, which requires FCC approval, is expected to close within 12 months, the companies said in a statement.
Straight Path stock (NYSE MKT: STRP) was up $53.38 to $89.86 per share.
