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Verizon Wireless has agreed to buy Little Rock-based Alltel Corporation for $5.9 billion, which would make it by far the largest cellular carrier in the U.S.
Verizon Wireless said Thursday it would assume $22.2 billion in debt in the deal, bringing the total value to $28.1 billion.
Alltel has 13.2 million subscribers in 34 states, mainly in rural areas away from the coasts. Added to Verizon Wireless 67.2 million subscribers, the size of the combined company would surpass AT&T, with 71.4 million subscribers.
The parties expect the deal to close by the end of the year, pending regulatory approvals. The deal is likely to face scrutiny by the Department of Justice and the Federal Trade Commission, but analysts expect it to pass.
In a statement, Verizon Communications Chairman and Chief Executive Ivan Seidenberg said Alltel is a "a perfect fit," given its valuable customer base and solid financials. He also pointed to the fact that the carriers share the same network technology. AT&T uses an incompatible technology.
The deal comes just seven months after Alltel was sold to TPG Capital and a unit of Goldman Sachs Group for $24.7 billion.
Speaking to reporters on Thursday, Alltel President and CEO Scott Ford said Verizon Wireless' buyout offer is "a hand-in-glove fit."
To see portions of the Scott Ford press conference, click on the links below:
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Verizon however has their call centers in India, have you ever tried to talk to someone from there?
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