Telecommunications giant T-Mobile (TMUS) is acquiring a majority of rival U.S. Cellular (USM)
in a deal valued at $4.40 billion U.S.
The acquisition includes U.S. Cellular’s mobile phone customers, network of retail stores, and some of its wireless spectrum, said the companies in a news release.
The purchase is being made through a combination of cash and up to $2 billion U.S. of debt.
T-Mobile said it will use U.S. Cellular’s wireless spectrum to improve its internet coverage in rural areas of America.
The deal should also lead to improved connectivity for U.S. Cellular customers throughout America, said the two companies.
T-Mobile will allow U.S. Cellular customers to keep their current wireless plans or switch to a new plan offered by T-Mobile.
The acquisition is subject to regulatory approval. A closing date for the transaction has not been announced.
Prior to today (May 28), the stock of T-Mobile had risen 23% in the last 12 months to trade at $166 U.S. per share.
U.S. Cellular’s stock has gained 193% over the past year and trades at $42.98 U.S. a share.
