Nextel and AMS announce definitive merger agreement.
RUTHERFORD, N.J.--(BUSINESS WIRE)--April 26, 1995--Nextel Communications Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CALL) and American Mobile Systems Inc. (NASDAQ:AMSE AMSE American Museum of Science & Energy (Tennessee)
AMSE Aircraft Maintenance Support Equipment (Canadian Forces)
AMSE Advanced Mass Sender Enterprise ) announced today that they have entered into a definitive agreement for a tax-free merger.
The definitive merger agreement replaces, expect in limited circumstances, the previously announced and pending stock purchase agreement between the companies, and has been approved by the board of directors of both companies.
Under the terms of the merger agreement, each AMS AMS - Andrew Message System share not currently held by Nextel will be exchanged for 0.62 of a share of Nextel common stock. Up to 4.2 million Nextel shares will be issued, valuing the transaction at approximately $65 million based on Nextel's closing share price of $15.63 on April 25, 1995.
The closing of the transaction is subject to various conditions, including AMS shareholder approval, and is expected to close during the summer of 1995.
AMS is a leading provider of specialized mobile radio See SMR. services in the state of Florida.
Nextel is the leading provider of integrated wireless communications wireless communications
System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. services focusing on the needs of mobile work groups. Nextel's Digital Mobile networks are presently operating throughout most of California and the greater metropolitan areas of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Chicago. Digital Mobile service is expected to be introduced in Florida during 1996.
CONTACT: Nextel Communications Inc., Rutherford
Paul Blalock, 201/531-5200
American Mobile Systems Inc.
Linda Frasier, 818/593-3000