Alltel acquires Midwest Wireless for $1.08 Billion
More acquisition news is coming in from the United States. The latest is that the fifth-largest U.S. mobile phone services company Alltel Corporation has announced their plans to acquire Midwest Wireless for $1.08 billion. The company is aiming to fill in the gaps in their coverage area. The deal would also give them coverage in new markets like Rochester, Minnesota.
Midwest Wireless is based in Rochester, Minnesota and provides services to around 400,000 customers in the state as well as Iowa and Wisconsin. Alltel’s acquisition of Midwest would consolidate the market even more which has seen several other mergers and takeovers in the recent times. They also recently acquired Western Wireless in August for $4.5 billion. The deal with Western Wireless gave them an additional 2 million customers.
This latest news of acquisition of Midwest helped Alltel to improve their share price in the market by around $2.48 to touch $64.30 yesterday in New York Stock Exchange composite trading. This year alone, the share price of the company has seen a rise of 9.4 percent. Alltel’s acquisition of Midwest Wireless is expected to be complete by the first half of 2006 following regulatory approval.
Alltel would now have around 15 million customers in 36 U.S. States.