Metrocall to Purchase Paging Rival ProNet

Metrocall Inc. said Monday that it has reached a deal to buy a large Dallas-based competitor, ProNet Inc., which would make Metrocall the nation’s second-largest paging company.

Metrocall, based in Alexandria, Va., said it would buy ProNet for $73.8 million and assume about $170.3 million of ProNet debt, under terms of a definitive merger agreement signed by the companies. Regulators and shareholders must approve the deal.

It would be the biggest acquisition by far for Metrocall, which two years ago adopted a strategy of growing by acquiring other electronic-messaging companies nationwide. Its purchase last year of five paging concerns, including A+ Network Inc. and Page America Group Inc., gave it a total of 2.5 million customers.

With ProNet, Metrocall would have more than 4 million subscribers, putting it behind only Paging Network Inc. of Plano, Texas, which has roughly 9 million subscribers.

The company Metrocall would form by buying ProNet would command more than 15% of the paging market in New York City, the Washington-Baltimore area, Houston and Charlotte, N.C.

The deal would continue a trend of consolidation in the paging industry, which has about 43 million subscribers.

Metrocall shares fell 6 cents to close at $5.94 on Nasdaq; ProNet shares fell $1 to $5, also on Nasdaq.

With pricing pressure intense, small paging operations have given way to a handful of nationwide carriers that, through size, can better manage costs and upgrade their systems.