IWO bought by US Unwired in $459M deal

CNY Business Journal (1996+), Jan 04, 2002 by Dickinson, Casey J

SYRACUSE - Independent Wireless One (IWO) will lose its independence and go unwired in a $559-million stock transaction. IWO, the Sprint PCS network partner for Central New York, will become part of US Unwired, a Louisiana-based Sprint PCS network partner. US Unwired will issue S459 million in stock and assume nearly $100 million in IWO debt. The transaction could be completed by April, pending regulatory approval.

The move is part of a consolidation within the family of Sprint PCS affiliates, says Robert Pini, spokesman for IWO.

"Sprint PCS provides a lot of back-office support," he adds. "The affiliates can combine operations easily."

US Unwired will become the largest Sprint PCS network partner following the merger. The company currently employs 800 and serves 263,000 customers in Tennessee, Arkansas, Mississippi, Alabama, Louisiana, Texas, and Florida.

IWO became a Sprint PCS affiliate in 1999. The company employs 325 and serves 125,000 subscribers from New Hampshire to northern Pennsylvania.

Steve Nielsen, IWO president and CEO, will join US Unwired as chief operating officer. IWO will designate three members of the ninemember US Unwired board after the merger. Christopher Stadler and Thomas Sullivan will join the US Unwired board as representatives of Bahrain-based Investcorp, majority owner of IWO. Harley Rupert, president and CEO of the Newport Telephone Co., a founder of IWO, also will join the board.

Sprint PCS customers will not notice any changes, says Pini. No job cuts are anticipated as part of the transaction, he adds.