Verizon Wireless to buy Alltel for USD28.1 billion

Verizon Wireless

Verizon Wireless announced today that it plans to acquire Alltel Corporation in a cash merger worth about USD$28.1 billion. Of that amount, about USD$22.2 billion is for Alltel’s debt.

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 is nationwide, for a uniform coast-to-coast experience.

For Verizon, the deal gives it 13 more million customers in 57 primarily rural markets that it does not currently serve. For Alltel customers, it also means that they will be able to take advantage of Verizon’s upcoming 4G LTE rollout.

Given that both companies currently use CDMA, the companies expect a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.

The two companies expect the merger to be completed by the end of the year assuming that they obtain all necessary regulatory approvals.

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