T-Mobile to Acquire U.S. Cellular Wireless Operations for $4.4 Billion


(NASDAQ:TMUS) announced on Tuesday that it will obtain almost all of U.S. Cellular’s wireless services, including its clients, branches, and 30% of its spectrum holdings for the value of $4.4 billion.

The development comes after U.S. Cellular’s strategic review started almost ten months ago, which caused its shares to soar over 10% in pre-market trading. U.S. Cellular’s ownership will include approximately 70% of its spectrum, its equity-method investments, and 4,400 telecom towers. In addition, T-Mobile will be a permanent tenant on a minimum of 2,600 of the towers.

With this acquisition, T-Mobile aims to better its current coverage. A total of $2 billion in debt and cash will be used to pay for the deal, to be assumed via an exchange offer to some U.S. Cellular debtholders.

T-Mobile has stated that this purchase will not affect its current financial forecast or shareholder return program for 2024. Due to operating costs and capital expenditures, the business anticipates approximately $1 billion in synergies. Pending regulatory approvals, the transaction is expected to close in the middle of 2025, and shareholder action is not necessary for this deal.

Telephone and Data Systems, which owns an 83% stake in the U.S. Cellular, has given written consent to approve the acquisition.

Verizon (NYSE:VZ) was also in discussions to acquire parts of the U.S. Cellular earlier this month, according to a report released by The Wall Street Journal.