US market leader Verizon Wireless has struck a deal to buy Cincinnati Bell’s spectrum holdings for US$210m.
The regional operator will lease back the spectrum after the deal has closed for a short time while it winds down its wireless network and…
US market leader Verizon Wireless has struck a deal to buy Cincinnati Bell’s spectrum holdings for US$210m.
The regional operator will lease back the spectrum after the deal has closed for a short time while it winds down its wireless network and migrates its customers.
Verizon will pay US$194m in cash and assume a number of tower lease obligations. The incumbent has also acquired the right to lease spectrum being sold by Cincinnati Bell to private equity firm Grain Management.
Cincinnati Bell estimated the deal to be worth between 4.5 and 6.0 times its estimated adjusted EBITDA for 2014 and 2015, based on consensus wireless averages.
Ted Torbeck, president and CEO of Cincinnati Bell, said the deal allowed his company to focus on its “strategic product base”, referring to Fioptics – its triple play service.
Verizon will need regulatory approval from the Federal Communications Commission.
Stephens is acting as sole financial advisor to Cincinnati Bell. Cravath, Swaine & Moore is acting as its legal counsel, and Bingham McCutchen as its regulatory counsel.
