Verizon Wireless has announced it has signed an agreement to acquire Price Communications Wireless, a wholly-owned subsidiary of Price Communications operating a wireless business covering 3.4 million POPS (Population Served) in 16 markets throughout four American states for $2.06 billion.
Under terms of the deal, Verizon Wireless will assume or redeem $550 million of Price Communications Wireless net debt and pay $1.5 billion in Verizon Wireless stock, valued at the offering price for the upcoming Verizon Wireless initial public offering.
On October 17, 2000, Verizon Communications and Vodafone Group, owners of Verizon Wireless, announced that Verizon Wireless would defer a planned IPO of common stock due to the recent volatility of capital markets.
Either party may terminate this agreement — conditioned on the completion of the IPO — if the offering does not occur by September 30, 2001.
The company will also gain more than 500,000 customers.
Verizon Wireless will acquire all Price Communications Wireless assets, including 41 company-owned retail stores, a regional call centre in Atlanta and network infrastructure.