T-Mobile plans to acquire most of U.S. Cellular in an acquisition worth $4.4 billion, the wireless carriers announced on Tuesday.
The deal involves cash and as much as $2 billion in debt, with Bellevue, Washington-based T-Mobile buying 30% of U.S. Cellular’s spectrum assets as well as its customer accounts and retail stores.
U.S. Cellular customers will be allowed to keep their current plans or switch to a T-Mobile plan, the companies said. The transaction is expected to close in the middle of next year, pending regulatory approvals.
Chicago-based U.S. Cellular has more than 4 million wireless subscribers in 21 states. T-Mobile shook up the wireless industry in 2020 with its $26.5 billion takeover of Sprint.
Shares of U.S. Cellular leapt nearly 12% ahead of the opening bell, while shares of T-Mobile were treading water and lately down 0.2%.