(Reuters) – T-Mobile will buy nearly all of regional carrier United States Cellular’s (NYSE:) wireless operations, including customers, stores and 30% of its spectrum assets, in a deal valued at $4.4 billion, the telecom giant said on Tuesday. .
US Cellular shares jumped more than 10% in pre-market trading, nearly ten months after the company said it was exploring strategic options.
US Cellular will retain ownership of approximately 70% of its spectrum, equity investments, and 4,400 telecommunications towers. It says T-Mobile will be the long-term tenant of at least 2,600 towers.
T-Mobile, which plans to improve coverage for its customers, will finance the deal with cash and up to $2 billion in debt, which will be accepted through an exchange offer made to certain US Cellular debt holders.
T-Mobile does not expect any impact to its financial outlook or shareholder return program for 2024. The company expects operating expense and capital expenditure synergies to be approximately $1 billion.
The deal is expected to close in mid-2025, pending regulatory approval, and shareholders are not expected to take any action on the deal, US Cellular said.
It added that Telephone and Data Systems, which owns 83% of the shares of the regional telecom operator, provided written consent to approve the transaction.
If the deal doesn’t go through, T-Mobile will pay US Cellular a $60 million termination fee, Telephone and Data Systems said in a statement.
Verizon (NYSE:) was also in talks to buy parts of the regional carrier, the Wall Street Journal reported earlier this month.