Alltel completes merger with Western Wireless |
| Tuesday, 02 August 2005 | |
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Alltel completes merger with Western Wireless Release date: Aug. 1, 2005 LITTLE ROCK, Ark. - Alltel today announced it has completed its $6.5 billion merger with Western Wireless Corporation, further expanding its 850 MHz wireless business to serve 10 million domestic customers in 34 states. The merger increases Alltel's wireless revenue mix to nearly 70 percent and expands the company's wireless operations into nine new states. The company also will be the leading roaming partner in its markets for the top four national wireless providers. "This is a growth story that benefits our customers, shareholders and employees," said Alltel President and CEO Scott Ford. "This merger gives us significant opportunities to expand our wireless business while maintaining our financial flexibility and strong balance sheet." In aggregate, Alltel will issue approximately 54.3 million shares of common stock and pay $933.4 million in cash for Western Wireless. Alltel also will assume estimated net debt of $2.1 billion. "This merger adds wireless properties that will contribute to our long-term growth," Ford said. "Alltel's wireless business now will cover more than 50 percent of the continental United States with assets that are complementary both geographically and technologically. We have greater ability to grow our customer base and offer multiple technologies to support our roaming partners." Other highlights of the merger include: Alltel's wireless operations will serve a population of 72 million, covering about 25 percent of the U.S. population and about 56 percent of the land mass in the contiguous United States. The company is expanding into these states: California, Idaho, Minnesota, Montana, Nevada, North Dakota, South Dakota, Utah and Wyoming. Alltel will have a broader presence for its wireless retail and wholesale operations. The company will have a retail presence in 34 states and will become a leading independent roaming partner for each of the nation's top four wireless carriers. Alltel will have nearly $10 billion in annual revenues and operating income before depreciation and amortization of nearly $4 billion. Alltel will maintain a solid credit rating and a well-capitalized balance sheet with ample liquidity. The company remains well positioned for growth and the generation of free cash flow. On July 25, 2005, Western Wireless announced an agreement to sell its Irish assets and said it is in discussions to sell its Austrian operations. Alltel will continue to pursue those initiatives as well as the disposition of Western Wireless' remaining international assets. Alltel's current leadership team will remain in place after the merger, and the company will add Western Wireless executives in key areas to strengthen the merged company's wireless operations, engineering and technology efforts. Most of the executives who join Alltel will remain based in Bellevue, Wash. The Bellevue operations also will focus on multi-technology network planning, wireless data applications, wireless wholesale businesses and wireless regulatory affairs. Alltel will retain more than 600 jobs in Washington after the merger, including a call center in Issaquah. Alltel also will continue operating the Manhattan, Kan., call center and retain most if not all other key jobs across Western Wireless' footprint. At its Little Rock headquarters, Alltel will create about 130 new jobs in the customer service, engineering, sales and marketing, and accounting groups. Alltel is a customer-focused communications company with more than 14 million customers in 36 states and nearly $10 billion in annual revenues. |
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