Verizon Agrees to Purchase Alltel
Verizon Wireless has agreed to purchase rival Alltel Corp. for $28.1 billion, in a deal that allows Verizon to leapfrog AT&T and become the top wireless carrier in the U.S. According to the New York Times, the combined company will have more than 80 million subscribers. The deal will give Verizon access to 57 markets nationwide that it did not previously serve, the company said.
The deal entails Verizon paying $5.9 billion for Alltel’s equity and assume $22.2 billion in debt obligations, the Times said.
“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” Verizon Wireless’ president and CEO, Lowell McAdam, said in a statement announcing the deal.