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U.S. Cellular, Telephone and Data sell wireless assets to T-Mobile for $4.4B

United States Cellular (USM) and Telephone and Data System (TDS) announced they have entered into a definitive agreement to sell UScellular’s wireless operations and select spectrum assets to T-Mobile (TMUS) for a purchase price of $4.4B, including a combination of cash and up to approximately $2B of assumed debt. Under the terms of the agreement, T-Mobile will acquire UScellular’s wireless operations and approximately 30% of spectrum assets across several spectrum bands. In addition, T-Mobile will enter into a new master license agreement on more than 2,000 towers. The agreement follows a thorough strategic review process announced in August 2023 and has been unanimously recommended by the independent directors of UScellular and unanimously approved by the boards of directors of both UScellular and TDS, an 83% shareholder of UScellular. In connection with the agreement, T-Mobile will enter into a new long-term MLA on a minimum of 2,015 incremental towers owned by UScellular and extend the lease term for the approximately 600 towers where T-Mobile is already a tenant. This will ensure continued, uninterrupted service for UScellular customers following the transaction and create a long-term contracted revenue stream from a strong anchor tenant for at least 15 years after the close of the transaction. With the inclusion of the towers occupied by other existing third-party tenants, UScellular’s tower assets will represent one of the largest and most attractive tower businesses in the United States. The transaction has been unanimously recommended by the independent directors of UScellular and unanimously approved by the boards of directors of both UScellular and TDS. In addition, TDS, in its role as the 83% shareholder of UScellular, has delivered its written consent approving the transaction. No further action by UScellular’s shareholders will be needed or solicited in connection with the transaction. The transaction is expected to close in mid-2025, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions.

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