10:31 AM EDT, 05/28/2024 (MT Newswires) -- T-Mobile US ( TMUS ) agreed to purchase substantially all of US Cellular's (USM) wireless operations in a deal worth about $4.4 billion, the companies said Tuesday.

Under the terms of the deal, T-Mobile will pay for the assets in cash and assume up to roughly $2 billion of debt. The transaction includes US Cellular's wireless customers and stores and about 30% of its spectrum assets.

The companies expect to complete the deal, which requires approval from regulators, in the middle of next year. Telephone and Data Systems ( TDS/PV ) , which owns 83% of US Cellular, has given its clearance for the transaction. Shares of US Cellular were 0.7% down in Tuesday's trading session, while T-Mobile's gained 0.9%.

As part of the deal, US Cellular's customers will gain access to T-Mobile's 5G network technology. US Cellular will retain 70% of its spectrum portfolio and significant equity method investment interests, mainly from its wireless partnerships.

"This deal will create opportunity for T-Mobile to bring millions of (US Cellular) customers lower prices and the Un-carrier's superior value on our best-in-class nationwide 5G network, offering much needed choice and more real competition across the wireless industry," T-Mobile Chief Executive Mike Sievert said in a statement. "Bringing together (US Cellular's) network resources with ours will enable us to fill gaps in connectivity that will create a better experience for all of our customers with more coverage and more capacity."

Additionally, T-Mobile agreed to enter into a long-term license arrangement for at least 2,015 towers owned by US Cellular and extend the lease term for about 600 towers where T-Mobile is already a tenant.

"In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile," US Cellular Chair LeRoy Carlson Jr. said. "T-Mobile has the resources to provide (US Cellular's) customers with an unparalleled network experience, lower prices and higher-quality services."

T-Mobile doesn't expect the acquisition to impact its full-year guidance. The company anticipates the deal to generate about $1 billion in annual run-rate cost synergies. It currently estimates the integration to cost between $2.2 billion and $2.6 billion.

Price: 167.86, Change: +1.85, Percent Change: +1.12