AT&T plans to acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock deal valued at about $39 billion, the companies announced on Sunday.
The deal should allow AT&T to add network capacity sooner than any alternative, the companies said in a statement. The acquisition will also allow AT&T to bring LTE (Long Term Evolution) technology to T-Mobile customers.
“This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations," said Randall Stephenson, AT&T Chairman and CEO.
“It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people,"
The deal calls for Deutsche Telekom to receive an approximatey 8 percent equity stake in AT&T. The boards of directors of the companies have approved the deal.