US telco T-Mobile US Inc (NASDAQ:TMUS, ETR:TM5) is to acquire US Cellular's wireless operations, network assets and a customer base of four million in a US$4.4 billion deal.
Additionally, T-Mobile will redraw an agreement for its agreement for more than 2,000 mobile towers and extend leases for around 600 towers where it's already a tenant.
US Cellular will retain ownership of about 70% of its spectrum, a raft of investments and 4,400 telecom towers.
Mike Sievert, T-Mobile’s CEO, said this latest acquisition would "create a better experience for all of our customers with more coverage and more capacity."
T-Mobile has plenty of experience integrating rivals having previously bought Sprint in 2020 and merging with MetroPCS in 2013.
US Cellular chair LeRoy Carlson Jr cited the rising cost of capital equipment as a reason for accepting the offer.
"In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies,” he added.
Telephone and Data Systems, which is US Cellular’s 83% majority shareholder, welcomed the merger.
T-Mobile was little changed at the open while US Cellular rose 17%.