08:33 AM EDT, 05/28/2024 (MT Newswires) -- (Updates with additional details)

T-Mobile US ( TMUS ) has entered into a definitive agreement with United States Cellular ( USM ) and Telephone and Data Systems ( TDS/PV ) to acquire UScellular's wireless operations and select spectrum assets in a deal valued at $4.4 billion, including a combination of cash and up to about $2 billion of assumed debt, the companies said Monday.

Under the deal, T-Mobile said it will pay cash and up to $2 billion of debt to be assumed by T-Mobile through an exchange offer that will be made to some UScellular debtholders prior to closing.

According to the companies, the deal is expected to close in the middle of next year.

UScellular will continue to own other spectrum and its towers after the deal closes, and T-Mobile will enter a long-term arrangement to lease space on at least 2,100 additional towers being retained, they said.

T-Mobile said the transaction is expected to yield around $1 billion in effective total operating and capitals expenses annual run rate cost synergies upon integration. The total cost of the integration is estimated to be from $2.2 billion to $2.6 billion.

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