US based telco Atlantic Tele-Network (ATN) announced that it has completed the purchase of certain former Alltel wireless assets from Verizon Wireless.
The total purchase price was US$223m, which includes US$23m of acquired net working capital. ATN…
US based telco Atlantic Tele-Network (ATN) announced that it has completed the purchase of certain former Alltel wireless assets from Verizon Wireless.
The total purchase price was US$223m, which includes US$23m of acquired net working capital. ATN states that the acquisition was funded by a combination of cash on hand and borrowings under the telco’s current credit facility. The acquisition was completed through the telco’s wholly owned subsidiary Allied Wireless Communications Corporation (AWCC), and sees ATN take over wireless properties and licences that serve some 895,000 subscribers across the US states of Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho.
ATN states that it currently expects that these properties will generate approximately US$500m in annual service revenues during the first 12 months of its operation of the assets.
ATN president and CEO Michael Prior said, “We appreciate the hard work of all parties in closing this transaction. We have a very experienced management team in place at AWCC, led by Frank O’Mara, a former senior executive at Alltel, and welcome our new employees who support these markets. Consumers recognize the Alltel brand for value, service and choice, and we plan to continue operating our business with the same approach in these markets.”
Verizon Wireless was required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel in January 2009.
