Telecom provider T-Mobile US on Tuesday said it has agreed to acquire United States Cellular Corporation's wireless operations and approximately 30% of its spectrum assets, for about $4.4 billion including cash and up to $2 billion of debts.
T-Mobile said it does not expect the transaction to impact its 2024 guidance.
T-Mobile expects this transaction will yield about $1 billion in effective total opex and capex annual run rate cost synergies, with total cost to achieve the integration currently estimated at between $2.2 billion to $2.6 billion.
The company said it plans to reinvest a portion of synergies toward enhancing consumer choice, quality and competition in the wireless industry.
UScellular will retain ownership of its other spectrum as well as its towers, with T-Mobile entering into a long-term arrangement to lease space on at least 2,100 additional towers being retained.
Upon closing the deal, UScellular customers will be able to access T-Mobile's 5G network.
Also, UScellular customers will have the option to stay on their current plans or move to an unlimited T-Mobile plan with no switching costs.
"As customers from both companies will get more coverage and more capacity from our combined footprint, our competitors will be forced to keep up - and even more consumers will benefit," said Mike Sievert, CEO of T-Mobile.
The transaction is expected to close in mid-2025.
