Verizon to Acquire Alltel

Verizon is going to buy Alltel equity and debt in a transaction worth $28.1 billion. Verizon will purchase Alltel from TPG Capital and GS Capital Partners, for about $5.9 billion in cash and will assume Alltel’s debt, which is estimated to be $22.2 billion, making the total transaction value $28.1 billion.

The deal appears to be driven in part by Goldman Sachs and several of the large banks that financed the original deal seeking a way out of it. Citigroup, Barclays, Royal Bank of Scotland and others were never able to sell all of the debt, which was sitting on their own books at a loss.

The deal is expected to close by the end of the year, pending regulatory approvals.

“We believe customers would get access to more products and services, better calling plans [including expanded IN calling and less roaming] and a great network,” a Verizon Wireless spokesperson told InternetNews.com.

Verizon said those benefits would be achieved through enhanced network coverage, spectrum and customer care.

Verizon Wireless and Alltel both use Cltel,, which will make integrating the two companies’ networks easier, and more efficient. It was earlier this year that AT&T commented on how smoothly the merger between Cingular and AT&T Wireless went because they shared a common technology called GSM.

Source: Forbes

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