T-Mobile to acquire most of U.S. Cellular in $4.4 billion deal; U.S. Cellular shares surge

Shares of U.S. Cellular popped more than 12% Tuesday after T-Mobile announced that it plans to acquire most of the company, including the wireless operator’s stores, some of its spectrum assets and its customers in a deal worth $4.4 billion.

The deal includes cash and up to $2 billion of debt, according to a press release from T-Mobile. Up to $100 million of the deal’s cash portion depends on certain financial and operating metrics being met between its signing and closing, according to a separate press release from U.S. Cellular.

Shares of T-Mobile closed up around 1% for the session after hitting a new high of $168.71 during intraday trading.

T-Mobile will acquire about 30% of U.S. Cellular’s wireless spectrum as part of the deal, according to the U.S. Cellular release. It plans to use that to improve coverage in rural areas while offering better connectivity to U.S. Cellular customers around the United States, the two companies announced. The company said it will allow U.S. Cellular customers to keep their current plans or switch to a T-Mobile plan.

Source: CNBC