FILE - In this Oct. 22, 2009 file photo, Peter Adams, a telephone line splicer for FairPoint Communications, works from a bucket in Freeport, Maine. The telephone service provider for Maine, New Hampshire and Vermont declared an impasse after four months of labor negotiations. More than 1,700 workers were advised by union officials Thursday, Aug. 28, 2014, to be on “standby” for a possible strike or lockout. (AP Photo/Robert F. Bukaty, File)FairPoint Communications announced a deadlock with its union employees following four months of labor negotiations. ap
FILE - In this Oct. 22, 2009 file photo, Peter Adams, a telephone line splicer for FairPoint Communications, works from a bucket in Freeport, Maine. The telephone service provider for Maine, New Hampshire and Vermont declared an impasse after four months of labor negotiations. More than 1,700 workers were advised by union officials Thursday, Aug. 28, 2014, to be on “standby” for a possible strike or lockout. (AP Photo/Robert F. Bukaty, File)FairPoint Communications announced a deadlock with its union employees following four months of labor negotiations. ap Credit: Robert F. Bukaty

An Illinois-based broadband and business communications company has entered into an agreement to buy FairPoint Communications in a transaction worth $1.5 billion – slightly more than half the $2.7 billion that FairPoint paid Verizon in 2007 for its northern New England operation.

The agreement and proposed merger have been approved by the boards of directors at Mattoon-based Consolidated Communications and at Charlotte, N.C.-based FairPoint. The deal is expected to close by mid-2017. Consolidated will assume FairPoint’s debt. FairPoint reported a net debt of about $887 million as of Sept. 30.

FairPoint’s stock gained $2.07, or 12.2 percent, to $19.08 and Consolidated stock slid $1.16, or 4.1 percent, to $27.22.

Bob Udell, Consolidated president and CEO, said Monday the agreement combines two companies serving 24 states with extensive fiber networks and broadband solutions provider strategies.

FairPoint’s largest network is in northern New England, where FairPoint said last month it was laying off at least 110 workers because of a downturn in its traditional telephone service.

Unions representing FairPoint workers in northern New England say they view the potential sale with cautious optimism.

Union leaders said Monday they’re looking closely at Consolidated Communications’ finances, technical capacity, history of labor relations and the regulatory requirements for the sale. The statement came from the International Brotherhood of Electrical Workers System and Communications Workers of America, representing more than 1,500 workers.