UScellular finalizes the transaction of its wireless services business
Array Digital Infrastructure Completes $4.3 Billion Divestiture Deal with T-Mobile
Array Digital Infrastructure, Inc. (formerly UScellular) has successfully closed a major deal worth $4.3 billion with T-Mobile US, Inc. The transaction, which took place on July 1, 2025, involves $2.6 billion in cash and $1.7 billion in debt assumption by T-Mobile.
Following this sale, Array has fully exited the consumer wireless service business and transitioned into a pure-play digital infrastructure company. The company now focuses on its remaining assets, primarily its portfolio of approximately 4,400 owned towers, retained spectrum holdings, and noncontrolling investments.
Post-divestiture, Array will retain ownership of its tower assets, making it the fifth largest tower company in the U.S. The company has also entered into a 15-year Master License Agreement (MLA) with T-Mobile, allowing T-Mobile to be a long-term tenant on a minimum of 2,015 of these towers and extend leases on about 600 existing towers. This arrangement promises stable, predictable recurring revenue streams from an investment-grade anchor tenant.
In terms of strategic direction, Array aims to capitalize on the growing demand for wireless infrastructure, especially as carriers roll out 5G and plan for future 6G networks. The company appointed Douglas W. Chambers, formerly CFO, as interim President and CEO to oversee the transition, indicating a focus on financial discipline and phased transformation.
Array also plans to return substantial proceeds from the T-Mobile transaction to shareholders through a special cash dividend expected between $22.50 and $23.75 per share. This significant one-time shareholder return aligns with the strategic pivot of the company.
In addition to the T-Mobile deal, Array has entered into agreements with Verizon, AT&T, and two other mobile network operators to sell a portion of the spectrum licenses that were not included in the sale to T-Mobile. These transactions are subject to regulatory approval and customary closing conditions.
Array Digital Infrastructure intends to trade on the NYSE under the new ticker symbol "AD," effective August 12, 2025, reflecting its rebranding. The company will provide additional information during its second quarter earnings call on August 11, 2025.
Sidley Austin LLP served as lead legal advisor for TDS in the divestiture deal, while Clifford Chance LLP and Wilkinson Barker Knauer, LLP served as legal regulatory advisors for UScellular and TDS for the transaction. Cravath, Swaine & Moore LLP served as legal advisor for the independent directors of UScellular. Citigroup Global Markets Inc. served as lead financial advisor for TDS in the divestiture deal, with TD Securities (USA) LLC and Wells Fargo serving as financial advisors for TDS for the transaction. PJT Partners LP served as financial advisor for the independent directors of UScellular.
Array Digital Infrastructure, Inc. has also announced its intention to opportunistically monetize its retained spectrum holdings that are not under previously announced agreements. A Form 8-K will be filed with the U.S. Securities and Exchange Commission and will be available on the Company's investor relations website. Centerview Partners LLC served as financial advisor for TDS in the divestiture deal.
With these moves, Array Digital Infrastructure is positioning itself as an infrastructure-centric firm, leveraging its tower assets and long-term lease agreements to generate stable cash flow, moving away from the capital-intensive wireless service sector to become a key player in the U.S. telecom infrastructure ecosystem.
- Array Digital Infrastructure, following its $4.3 billion divestiture deal with T-Mobile, intends to capitalize on the growing demand for wireless infrastructure, leveraging its tower assets and long-term lease agreements to generate stable cash flow, positioning itself as an infrastructure-centric firm.
- The strategic pivot of Array Digital Infrastructure is apparent through its move to trade on the NYSE under the new ticker symbol "AD" and its plans to return substantial proceeds from the T-Mobile transaction to shareholders through a special cash dividend.
- In the technology sector, Array Digital Infrastructure has announced its intention to monetize its retained spectrum holdings, signaling a shift away from the consumer wireless service business towards digital infrastructure, a move that aligns with the increasing demand for cloud and 5G/6G networks in finance and business.
