T-Mobile to buy SunCom Wireless for $1.6B
T-Mobile USA Inc. has agreed to buy U.S. cell-phone company SunCom Wireless Holdings Inc. for $1.6 billion, the company said Monday.
T-Mobile parent Deutsche Telekom AG said the purchase -- which includes $800 million in debt, making the total price $2.4 billion -- would create $1 billion in synergies, mostly through the reduction of roaming fees and operating costs.
T-Mobile USA has had a roaming agreement with SunCom since 2004.
SunCom's 1.1 million customers are largely in North Carolina, South Carolina, Tennessee, Georgia, Puerto Rico and the U.S. Virgin Islands, T-Mobile said. T-Mobile USA has almost 27 million customers.
Deutsche Telekom Chairman Rene Obermann said the deal would advance T-Mobile's strategy of growing in the markets where it was already present.
It which would also increase T-Mobile's U.S. "footprint" to include 98 of the top 100 markets, T-Mobile USA President Robert Dotson said.
SunCom booked revenue of $31 on sales of $242.5 million this year, up from a $181 million loss on sales of $206.7 million in the first half of last year.
SunCom shareholders will receive $27 a share, 22.7 percent more than the stock's closing price Friday.
Deutsche Telekom said it expected the deal to close in 2008's first half, pending government approvals. // Copyright 2007 by United Press International
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