Alltel agrees to purchase Midwest Wireless for $1 billion in cash; Company expands 850 MHz markets in Midwestern U.S., adds PCS
November 18 2005 - 8:00AM
Business Wire
Alltel (NYSE:AT), 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. About Alltel Alltel is a customer-focused
communications company with more than 15 million customers in 36
states and nearly $10 billion in annual revenues. More information
on Alltel is available at www.alltel.com. About Midwest Wireless
Based in Mankato, Minnesota, Midwest Wireless is a leading regional
wireless services provider with more than 400,000 customers in
Minnesota, Iowa and Wisconsin. With a company-wide focus on
customer satisfaction, Midwest Wireless has one of the highest
customer loyalty rates in the industry. Midwest Wireless offers
wireless phone services, as well as mobile Internet access on
phones and wireless devices and oneWave Integrated Communications,
giving customers the ability to combine their wireless and
traditional phone services. In select areas, the company also
offers clearWave Broadband Internet services for homes and
businesses. More information on Midwest Wireless is available at
www.midwestwireless.com. Alltel claims the protection of the
safe-harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to uncertainties that could cause actual
future events and results to differ materially from those expressed
in the forward-looking statements. These forward-looking statements
are based on estimates, projections, beliefs, and assumptions and
are not guarantees of future events and results. Actual future
events and results may differ materially from those expressed in
these forward-looking statements as a result of a number of
important factors. Representative examples of these factors include
(without limitation) adverse changes in economic conditions in the
markets served by Alltel; the extent, timing, and overall effects
of competition in the communications business; material changes in
the communications industry generally that could adversely affect
vendor relationships with equipment and network suppliers and
customer relationships with wholesale customers; changes in
communications technology; the risks associated with pending
acquisitions and dispositions, including the pending acquisition of
the Idaho markets and the pending dispositions of Western Wireless'
Kansas and Nebraska markets and international assets; the risks
associated with the integration of acquired businesses, including
the integration of Western Wireless; the uncertainties related to
any discussions or negotiations regarding the sale of any of the
international assets or the wireline repositioning; adverse changes
in the terms and conditions of the wireless roaming agreements of
Alltel; the uncertainties related to Alltel's strategic
investments; the effects of litigation; and the effects of federal
and state legislation, rules, and regulations governing the
communications industry. In addition to these factors, actual
future performance, outcomes, and results may differ materially
because of more general factors including (without limitation)
general industry and market conditions and growth rates, economic
conditions, and governmental and public policy changes. Alltel,
NYSE: AT www.alltel.com
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