T-Mobile US agreed to pay $1.95 billion to purchase mobile assets from former Sprint partner Shenandoah Telecommunications (Shentel), settling a spat over valuation and setting the stage for the deal to close.
In a regulatory filing, T-Mobile said a third-party appraisal valued Shentel’s mobile business at $2.1 billion. Shentel stated in a release the final purchase price was set at 90 per cent of the total ($1.89 billion) plus additional costs related to an unrealised Sprint management fee.
Other terms of the purchase agreement remain under negotiation, but the companies expect to finalise these in the current quarter and close in Q2.
Shentel offers mobile coverage spanning six states and had 1.1 million subscribers as of end-Q2 2020, the most recent period for which wireless figures were available.
The spat over Shentel’s valuation began when T-Mobile exercised an option to acquire the mobile business [1] in August 2020. At the time, Shentel noted the unit generated approximately $400 million in annual revenue and had approximately 400 employees.
Last month, T-Mobile agreed an acquisition of smaller Sprint affiliate Brookings Municipal Utilities [2] for an undisclosed sum.
[1] https://www.mobileworldlive.com/featured-content/top-three/t-mobile-shentel-spar-over-acquisition-terms
[2] https://www.mobileworldlive.com/featured-content/top-three/t-mobile-scoops-up-assets-from-sprint-affiliate
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