Verizon (News - Alert) Wireless announced today that it’s bought Rural Cellular Corporation, doing business as “Unicel,” for $2.66 billion in cash and assumed debt.

 

The FCC (News - Alert) approved the transaction, according to the companies.

 

Under the terms of the acquisition, Verizon Wireless paid $45 in cash for each share of Rural Cellular’s common stock for a total common equity price of approximately $764 million on a fully diluted basis, according to the companies.

 

Immediately prior to the closing of the transaction, Rural Cellular called for redemption of all its outstanding long-term notes, with a redemption date of September 5, company officials say.

 

The acquisition is expected to expand Verizon Wireless’ network coverage to many rural markets around the country and increase the company’s customers by more than 625,000.

 

Verizon Wireless’ licensed coverage area would increase by 4.7 million people, and will add licenses covering markets in Maine, New Hampshire, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Idaho, Washington and Oregon.

 

Verizon Wireless said it will begin today to serve customers in Rural Cellular markets that will be merged with Verizon Wireless’ operations.

 

The company will continue to use the Unicel brand for the next several months, as it works to integrate networks, and deploy CDMA technology and high-speed wireless broadband service.

 

Verizon Wireless said it will maintain Rural Cellular’s existing GSM networks to continue serving the roaming needs of other GSM carriers’ customers.

 

During the network conversion period, nearly every Unicel-branded store will remain open to serve customers, company officials say. Unicel will be re-branded as Verizon Wireless in phases when customers are transitioned to the Verizon Wireless network and billing conversions are completed, beginning early in 2009 and continuing through mid-year.