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T-Mobile to Acquire UScellular Wireless Operations in $4.4B Deal

May 29, 2024
Deal will expand network and establish new tower license agreement.

T-Mobile and UScellular announced that T-Mobile has agreed to acquire “substantially all of UScellular’s wireless operations,” according to a press release.

This would include UScellular’s wireless customers and stores, as well as certain specified spectrum assets. The deal would mean millions of UScelluar customers, particularly those in rural areas, would join T-Mobile’s network, and UScellular customers will have the ability to join T-Mobile’s plans.

T-Mobile customers will also get access to UScellular’s network in areas that previously had limited coverage from the addition of the acquired UScellular spectrum to T-Mobile’s network.

Additionally, T-Mobile will enter into a new license agreement on towers and extend the lease term for other towers.

“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” said Mike Sievert, CEO of T-Mobile.

“T-Mobile’s purchase and integration of UScellular’s wireless operations will provide best-in-class connectivity to rural Americans through enhanced nationwide coverage and service offerings at more compelling price points,” said Laurent Therivel, CEO of UScellular. “The transaction provides our customers access to better coverage and speeds, as well as unlimited texting in more than 215 countries, content offers, device upgrades and other T-Mobile benefits.”

UScellular customers will have the option to stay on their current plans or move to an unlimited T-Mobile plan of their choosing.

T-Mobile previously integrated MetroPCS in 2013 and Sprint in 2020.

Transaction Details

According to a press release, T-Mobile will pay approximately $4.4 billion for the assets being acquired from UScellular in the transaction in a combination of cash and up to $2.0 billion of debt to be assumed by T-Mobile through an exchange offer to be made to certain UScellular debtholders prior to closing.

To the extent any debtholders do not participate in the exchange, their bonds will continue as obligations of UScellular and the cash portion of the purchase price will be correspondingly increased.

Following the closing of the transaction, UScellular will retain ownership of its other spectrum as well as its towers, with T-Mobile entering into a long-term arrangement to lease space on at least 2,100 additional towers being retained.

The transaction, which is subject to the satisfaction of customary closing conditions and receipt of certain regulatory approvals, is expected to close in mid-2025.

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ISE Staff