T-Mobile announced Tuesday that it plans to acquire most of U.S. Cellular, including stores, some of the wireless operator’s spectrum and its customers, in a deal worth $4.4 billion. The deal includes cash and up to $2 billion of debt.
Shares of U.S. Cellular jumped more than 7% in premarket trading. T-Mobile shares were flat.
T-Mobile said it will use U.S. Cellular wireless spectrum to improve coverage in rural areas while offering better connectivity to U.S. Cellular customers around the United States. The company said it will allow U.S. Cellular customers to keep their current plans or switch to a T-Mobile plan.
U.S. Cellular will retain some of its wireless spectrum and towers and will lease space on at least 2,100 additional towers to T-Mobile. The companies expect the deal to close in mid-2025.
T-Mobile merged with Sprint in 2020 in a deal worth $26 billion.
