Local broadband provider RCN to be bought by private firm

Herndon-based RCN announced Friday that it has agreed to be acquired by a private equity investment firm.

Under the terms of the deal, the Boston-based ABRY Partners, would pay a total of $1.2 billion for the local broadband provider, in a move that would take the company to a privately held status.

ABRY said that it would pay $15 per share, in cash, for shares of the local company, a figure that RCN says is a 43 premium over its average closing price during the past 30 trading days.

The deal would require shareholder and regulator approval. If the proposal gets those blessings, the deal would likely be completed in the latter half of 2010.

RCN's cable television and Internet service network covers Boston, Chicago, the D.C. area, Philadelphia and New York.

The bid sent RCN share prices soaring in Friday morning trading, after a Thursday afternoon close of $12.26. In the aftermath of the announcement, the stock was trading at more than $15 per share.