The merger between MetroPCS and T-Mobile USA is completed, as MetroPCS shareholders approved the deal this morning.
Shareholders were expected to give the nod to the deal, especially after T-Mobile USA parent company Deutsche Telekom reduced the amount of debt MetroPCS would carry from the merger from $15 billion to $11.2 billion and also lowered the interest rate on the debt, calling it its “best and final offer.”
It was good enough for MetroPCS, which will now bring its 9.3 million customers to the T-Mobile network. The deal wil also allow T-Mobile to expand its spectrum and continue growing its recently rolled out LTE network.
“Our combination with T-Mobile will create the value leader in the U.S. wireless marketplace, and we are confident that the combination of these two outstanding businesses is the best outcome for MetroPCS and our stockholders and will maximize stockholder value,” Roger D. Linquist, Chairman and CEO of MetroPCS, said in a press release. “We look forward to completing the combination shortly and delivering compelling value to the stockholders and customers of the combined company.”
It has been more than five months since T-Mobile announced its intentions to merge with MetroPCS. T-Mobile plans to issue a $1.5 billion cash payment as part of the deal, and give MetroPCS shareholders a 26 percent ownership in the new entity.
“We are thrilled that MetroPCS stockholders voted to approve this transaction which delivers strategic and financial benefits,” John Legere, President and CEO of T-Mobile USA, said in a statement. “A combined T-Mobile and MetroPCS will unite two companies with one common vision: challenge the status quo and deliver exceptional wireless experiences for our customers. As America’s Un-carrier, we will redefine the wireless industry.”
Earlier this month, the Federal Communications Commission approved the merger, and the MetroPCS board has since been urging shareholders to do so as well.
MetroPCS directly employs 3,700 people, while T-Mobile employs about 36,000 in the U.S., with 4,800 people here in Washington.
Last month, T-Mobile made a series of attention-getting moves — finally landing the iPhone, and rolling out a major change to the way its customers will pay for their smartphones. On our GeekWire radio show, we had the chance to speak with Andrew Sherrard, the senior vice president of marketing for T-Mobile USA, who answered our questions about the company’s new strategy.
T-Mobile USA is based in Bellevue.
Update, 10:15 a.m. — This story was updated with an official MetroPCS press release, as well as comment from T-Mobile and MetroPCS.
Previously on GeekWire: T-Mobile customers wait in line, swap Androids for iPhone 5