LITTLE ROCK, Ark.-Alltel Corp. closed on its $6.5 billion acquisition of Western Wireless Corp.
Alltel reported it would issue 54.3 million shares of common stock and pay $933.4 million in cash to Western Wireless shareholders. Alltel also will assume $2.1 billion in net debt.
Alltel noted it now serves 10 million domestic wireless customers in 34 states-including nine new states-and that its network covers 72 million potential customers. The carrier added that its network will support analog, TDMA, CDMA and GSM network technologies, and it will be a leading roaming partner for four of the nation’s five largest carriers.
“This merger adds wireless properties that will contribute to our long-term growth,” said Scott Ford, Alltel president and chief executive officer. “Alltel’s wireless business now will cover more than 50 percent of the continental United States with assets that are complementary both geographically and technologically. We have greater ability to grow our customer base and offer multiple technologies to support our roaming partners.”
Alltel added that wireless revenues will now account for nearly 70 percent of the company’s total revenues, which should approach nearly $10 billion per year.
Western Wireless currently employs about 2,900 people. Alltel said it expects to retain about 600 jobs that will focus on multi-technology planning, wireless data applications, wireless wholesale businesses and wireless regulatory affairs in Western Wireless’ Bellevue, Wash., headquarters following the acquisition. Alltel also plans to continue operating a call center in Issaquah, Wash., to support Western Wireless’ more than 1.5 million customers, as well as continue operating its current call center in Manhattan, Kan.
In connection with the deal’s closing, Alltel reported that the newly named Western Wireless L.L.C. subsidiary has commenced a cash tender offer to purchase any and all of its outstanding 9.25-percent senior notes due 2012, as well as a related consent solicitation to amend the indenture governing the notes. Western Wireless added that it will pay cash for each note tendered as part of the offer, which is scheduled to expire Aug. 11.
