Atlantic Tele-Network (ATN) has agreed to acquire certain assets from Verizon Wireless. ATN will acquire wireless properties, including wireless spectrum licenses and network assets, serving over 800,000 subscribers primarily in rural areas across Georgia, North Carolina, South Carolina, Illinois, Ohio, and Idaho.
Verizon Wireless is required to divest these assets as part of the regulatory approvals granted for its purchase of Alltel earlier this year.
ATN said that the transaction will provide an enhanced scale and revenue diversification and enable it to expand its US wireless business. Together with its existing US wireless operations, the company will now have wireless operations in rural areas of more than 10 states.
Under the terms of the agreement, ATN will acquire the assets for $200m in cash. ATN expects to fund the transaction with cash-on-hand and borrowings under its existing credit facility.
Michael Prior, president and CEO of ATN, said: “This is a very attractive transaction for ATN and it accomplishes what we have been patiently seeking over the past few years. We believe that our long history of operating success in comparable markets, combined with our financial resources, makes these businesses an ideal fit for us.”
The acquisition is subject to customary closing conditions and related regulatory approvals. ATN expects to close the transaction in the third or fourth quarter of 2009
