LITTLE ROCK, Ark. and MANKATO, Minn. - Alltel, owner and operator of the nation's largest wireless network, and Midwest Wireless Holdings today announced they have entered into a definitive agreement for Alltel to purchase Midwest Wireless. Alltel expects to gain approximately 400,000 wireless customers in southern Minnesota, northern and eastern Iowa, and western Wisconsin. These markets are contiguous to existing Alltel operations and cover a population of 1.9 million with 850 MHz.
Under the agreement, Alltel will pay $1.075 billion in cash to purchase Midwest Wireless' licenses, customers and network assets, including 1.9 PCS spectrum. Closing of the transaction is contingent upon regulatory approval and is expected to occur in the first half of 2006.
?The Midwest Wireless business strengthens our position in the wireless industry by adding CDMA properties that are contiguous to our existing markets in the Midwestern U.S.,? said Scott Ford, Alltel president and CEO. ?Midwest Wireless' network is well suited to deliver advanced data applications to customers through a reliable and robust 1x network.
?The company has a very strong post-pay customer base and its management team has built a business that has performed exceptionally well,? Ford said. ?We look forward to welcoming the Midwest Wireless team and customers to Alltel.?
?This combination represents the best of both worlds for Midwest Wireless customers, who will continue to benefit from our expertise serving rural markets as well as Alltel's national coverage footprint,? said Dennis Miller, president and CEO of Midwest Wireless. ?Our two companies are also an excellent fit culturally, with a shared commitment to investing in growth, empowering employees to realize their full potential, and delivering superior customer service.?
The financial and legal advisers for Alltel in this transaction were Stephens Inc., Merrill Lynch and Kutak Rock LLP. The financial advisers for Midwest Wireless were Bear Stearns and Greene, Holcomb and Fisher LLC. The legal adviser for Midwest Wireless was Leonard, Street and Deinard.
