North Pittsburgh Systems will be sold to a publicly traded Illinois-based telecommunications provider for $375.1 million in cash and stock.

The deal will expand the reach of Consolidated Communications Holdings Inc., which operates in Illinois and Texas, to Western Pennsylvania and is expected to close later this year.

Consolidated agreed to pay $25 per share in cash and stock.

The buyout will be submitted for North Pittsburgh shareholders' approval in the fall, when the company holds its annual meeting for the election of directors and other matters. Approval by Consolidated's shareholders is not required.

North Pittsburgh will pay its regular July quarterly dividend and expects to pay its regular October dividend but has not agreed to pay further dividends.

The buyout will add nearly 128,000 phone lines and over 16,000 digital subscriber line (DSL) customers to Consolidated's holdings.

The deal will also allow the combined firms to cut operating costs by $7 million in 2008 and roughly $11 million in 2009.

Shares of North Pittsburgh Systems are trading at $24.50, up $2.90 or over 13 percent.

More details in tomorrow's Pittsburgh Post-Gazette.