US incumbent AT&T has acquired Atlantic Tele-Network’s wireless operations, which operate under the Alltel brand, for US$780m in an all-cash deal.
AT&T will acquire wireless properties, including licenses, network assets, retail stores and…
US incumbent AT&T has acquired Atlantic Tele-Network’s wireless operations, which operate under the Alltel brand, for US$780m in an all-cash deal.
AT&T will acquire wireless properties, including licenses, network assets, retail stores and approximately 585,000 subscribers.
The acquisition includes spectrum in the 700MHz, 850MHz and 1900MHz bands and AT&T says the frequencies are largely complementary to its existing network.
Alltel operates a CDMA network that covers Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
Atlantic Tele-Network said these operations generated operating income of US$34m, which is net of depreciation and amortization expense of approximately US$42m, for the first nine months of 2012.
Commenting on the transaction Atlantic Tele-Network CEO Michael T. Prior said, “We have a disciplined, long-term approach to managing our portfolio and intend to balance the use of the after-tax proceeds among new acquisition opportunities, a possible reduction in debt outstanding, investments in our existing lines of business and returns to shareholders through dividends.”
Stephens Inc is serving as financial advisor to Atlantic Tele-Network and provided a fairness opinion for the transaction while Cleary Gottlieb Steen & Hamilton and Jenner & Block are providing legal counsel.
The transaction is subject to regulatory approval from the justice department and the FCC.
The companies expect to complete the transaction in the second half of 2013.