Verizon Wireless will buy the operating assets of SureWest Communications’ wireless business for $69 million, the companies said Tuesday.
Verizon Wireless will acquire the spectrum licenses and operating assets of SureWest Wireless, excluding SureWest’s more than 50-owned communication towers. SureWest had more than 50,000 wireless subscribers, as of the third quarter last year, and its spectrum licenses covered a population of 3.8 million in the Sacramento, Calif., area.
The licenses overlap with areas currently served by Verizon Wireless and will expand the company’s capacity in that area.
The transaction, which is expected to close in the second quarter, is subject to customary closing conditions and federal regulatory approvals. Completion of the transaction is not subject to financing, the companies said.
SureWest said it expects to use the net proceeds from the transaction to repay indebtedness to be incurred in connection with its previously announced acquisition of Everest Broadband Inc.
SureWest Communications www.surewest.com
Verizon Wireless www.verizonwireless.com
