The joint venture of Verizon Communications and Vodafone, Verizon Wireless has officially announced that they will buy Alltel and overtake AT&T as the largest wireless carrier in US once the transaction closes. According to the press release, “Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.”
“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, President and CEO of Verizon Wireless.
“This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman of the Verizon board. “Verizon Wireless’ acquisition of Alltel clearly provides opportunities for enhanced value for Verizon shareholders.”
“Both Alltel and Verizon Wireless have long track records of delivering a high-quality customer experience in the marketplace,” said Scott Ford, President and Chief Executive Officer of Alltel. “The combination of our two companies will continue and improve upon that heritage as, together, we can more quickly deliver an expanded range of innovative products and services to our customers.”