Verizon Wireless to buy Alltel for US$ 28.1 billion
Posted on 6-Jun-2008 10:26
Filed under: News
Verizon Wireless has entered into an agreement with Alltel Corporation and Atlantis Holdings LLC to acquire Alltel Corporation in a cash merger.
Verizon Wireless is a joint venture of Verizon Communications and Vodafone.
Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately US$5.9 billion. Based on Alltel’s projected net debt at closing of US$22.2 billion, the aggregate value of the transaction is US$28.1 billion.
The parties are targeting completion of the merger by the end of the year, subject to obtaining regulatory approvals.
Once this transaction closes, customers of both companies will have access to an expanded range of products and services, including a premier lineup of basic and advanced devices and an expanded IN Network calling community. Alltel customers also will benefit from advanced services including over-the-air downloadable music from a three-million-song library, and a network that covers the U.S.
“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, Verizon Wireless president and chief executive officer.
Alltel serves more than 13 million customers in markets in 34 states. This includes 57 primarily rural markets that Verizon Wireless does not serve. The transaction puts the Alltel markets and customers on a path to advanced 4th generation services as Verizon Wireless deploys LTE technology throughout its network over the next several years.
Alltel and Verizon Wireless both use a common network technology based on the CDMA standard, providing advantages of a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.