AT&T Inc agreed on Friday to acquire rural wireless provider Dobson Communications Corp for $2.8 billion in cash.
The offer of $13 per share adds about 1.7 million customers to AT&T’s nearly 62 million at a time when some analysts have questioned how much larger carriers can grow in a US wireless market that is saturated.
The offer represents a 17 per cent premium over Dobson’s closing price Friday of $11.11 in trading on the Nasdaq Stock Exchange. Including debt, the deal is worth a total of about $5.1 billion.
Oklahoma City-based Dobson does business under the Cellular One brand in rural and suburban markets in 17 states and has provided roaming services to AT&T since 1990.
AT&T Chief Executive Randall Stephenson, who took over for long-serving Ed Whitacre Jr earlier this month, has said AT&T will be a wireless-centered company going forward. The announcement of Dobson deal came at the close of Stephenson’s first board meeting as the chief executive.
