Verizon Wireless is acquiring Alltel in a cash merger. Under the terms of the agreement, 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.
Both mobile operators use a common network technology, and Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.
Alltel President and CEO Scott Ford will continue in his current position as head of Alltel until the merger is completed (by the end of the year).
Full press release is available on PRNewswire.