Nexstar Continues Buying Spree

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Nexstar Broadcasting is on the verge of closing a deal to acquire Communications Corp. of America, according to sources.

Nexstar has signed a letter of intent and is conducting due diligence on CCA properties encompassing 12 stations in smaller markets.

CCA stations are in markets ranging Shreveport, La. (DMA 82), to Alexandria, La. (DMA 179). Nexstar's portfolio ranges from Washington (DMA 8) to St. Joseph, Mo. (DMA 201). Most are in mid-size to smaller markets.

The acquisition would boost Nexstar's station count to roughly 84, bump up its duopoly count by at least one and enhance its already strong presence in Louisiana and Texas.

The seller multiple for the transaction likely will come in around 7-8 times cash flow, roughly in line with cash flow multiples for recent transactions. Until Nexstar completes due diligence and analyzes potential synergies, the buyer multiple remains unclear, though it's highly likely to be a point or two lower than the seller multiple.

The two companies hope to announce the transaction by or before the upcoming NAB Show, which kicks off in Las Vegas on April 6.

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