Private Equity Firms to Acquire Alltel for $27.5-Billion

Press Release - May 21, 2007

America’s fifth largest mobile phone carrier, Alltel, announced on Sunday that it is being acquired by two private equity firms in a deal worth $27.5 billion, ending speculation that it could be purchased by a larger competitor.

TPG Capital and Goldman Sachs Capital Partners became the first private equity investors ever to acquire a major U.S. wireless carrier when they agreed to buy out existing Alltel shareholders at a rate $71.50 per share. The two companies will pay a total of $24.8 billion for the carrier, which primarily serves customers in rural regions, and have agreed to assume $2.7 billion in long-term debt.

“This transaction delivers substantial and certain value to our shareholders while providing the company with long-term partners who share our commitment to our customers, employees and the communities we serve,” commented Alltel CEO, Scott Ford, who will keep his job after the acquisition goes through.

“Alltel has a long history of growth through strategic acquisitions, combined with a strong focus on customer service,” said Richard Friedman, who leads the Merchant Banking division at Goldman Sachs. “We are excited about this opportunity to partner with an exceptional management team to continue to support their strategies for growth.”