Mobile provider Alltel agrees to $27.5B buyout
Two investment companies scarf up provider to 12 million mobile users
IDG News Service - Mobile phone and wireless services provider Alltel Corp. on Sunday agreed to a $27.5 billion buyout, a deal likely to spur more such acquisitions in North America.
The Little Rock, Arkansas company, which serves 12 million mobile phone subscribers in 35 states, signed a deal to be bought by TPG Capital LLP and the private equity division of Goldman Sachs Group Inc. The two investment companies will pay $71.50 per share for Alltel stock.
Alltel's board of directors has approved the merger, but it still faces a shareholder vote and regulatory approval, the company said in a statement. Alltel CEO Scott Ford will remain at his post after the deal, as will most of Alltel's management team. Alltel's revenue in 2006 totaled $7.9 billion, up 20 percent over 2005. The company mainly operates in the U.S. Midwest and Southeast.
The deal could speed up other rumored acquisitions in North America. Three investment firms have reportedly been seeking partners to bid for BCE Inc., the Canadian telecommunications company, and rumors abound that a few groups are interested in Sprint Nextel Corp.
Last year, AT&T Inc. finalized a $86 billion deal to buy BellSouth Corp., the largest telecommunications merger in U.S. history. Some pundits fear these huge telecommunications deals could result in higher prices for users because there are fewer competitors. But others argue that increased competition from cable operators and wireless companies should keep prices under control.
Alltel hopes to close the deal by the end of 2007, or the first quarter of 2008, it said. Alltel became a pure wireless company last year after spinning-off its wireline business to form Windstream Corp. In addition to mobile phone services, the company is also among a few firms working to offer WiMax wireless Internet access to users.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Separating Work and Personal at the Platform Level: How BlackBerry Balance Works BlackBerry® Balance™ separates work from personal on the same mobile device, right at a platform level. Find out how it can work for...
- Protection for Every Enterprise: How BlackBerry Security Works Get an IT-level review of BlackBerry® Security, addressing data leakage protection, certified encryption, containerization and much more.
- Future Focus: What's Coming in Enterprise Mobility Management (EMM) Find out why Enterprise Mobility Management (EMM) solutions that are truly future-ready must be designed to enable Machine-to-Machine (M2M) capabilities and much more.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts