T-Mobile to acquire SunCom Wireless to expand network and customer service to the Southeastern US, Puerto Rico, and US Virgin Islands

September 17, 2007

1 Min Read

BELLEVUE, Wash. and BERWYN, Pa. -- T-Mobile USA, Inc. and SunCom Wireless Holdings, Inc. (NYSE:TPC - News) announced today that they have entered into a definitive merger agreement for the acquisition by T-Mobile USA of all of the outstanding shares of common stock of SunCom, for an aggregate of approximately $2.4 billion in cash and assumed debt. This includes cash payment of approximately $1.6 billion and $0.8 billion net debt. T-Mobile USA is a wholly owned subsidiary of Deutsche Telekom AG (NYSE:DT - News).

The acquisition will further enhance T-Mobile's network coverage in the southeastern United States and the Caribbean through the complementary addition of SunCom's markets and customers in North Carolina, South Carolina, Tennessee, Georgia, Puerto Rico and the U.S. Virgin Islands. SunCom operates a GSM/GPRS/EDGE network and has provided roaming service to T-Mobile in these markets since 2004.

Following the closing of the transaction, T-Mobile USA expects to fully integrate SunCom's assets into the T-Mobile network. T-Mobile is committed to providing SunCom customers with a smooth transition to T-Mobile's high-quality, innovative wireless services and products, such as its popular myFaves(TM) offering; its broad geographic reach on its highly regarded wireless network, and its industry-leading customer service.

"With the acquisition of SunCom, we will continue to implement our strategy to 'grow abroad with mobile', which is part of our overall group strategy," said Rene Obermann, chairman of the Board of Management of Deutsche Telekom. "At the same time we can realize significant synergies on the cost side and improve our market presence. As a result, this acquisition will fit very well with our strategy to grow abroad with mobile primarily within our current footprint within the context of market consolidation."

T-Mobile US Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like