T-Mobile (TMUS.O) will buy almost all of regional carrier United States Cellular’s (USM.N) wireless operations including customers, stores and 30 per cent of its spectrum assets in a deal valued at $4.4 billion, the telecom giant said.

US Cellular’s shares jumped more than 10 per cent in trading before the bell and comes nearly ten months after the company said it was exploring strategic options.

US Cellular will retain ownership of about 70 per cent of its spectrum, its equity-method investments as well as 4,400 telecom towers. It said T-Mobile will become a long-term tenant on at least at least 2,600 towers.

T-Mobile, which eyes improved coverage for its customers, will fund the deal in a combination of cash and up to $2 billion of debt to be assumed through an exchange offer to be made to some of US Cellular’s debtholders.

T-Mobile does not expect any impact on its financial forecast or shareholder return program for 2024. It expects an yield of about $1 billion in operating expense and capital spending cost synergies.

The deal is expected to close in mid-2025 after regulatory approvals, and shareholders are not expected to act on this deal, US Cellular said.

It added that Telephone and Data Systems (TDS.N), which is a 83 per cent shareholder of the regional carrier, has provided written consent approving the deal.

If the deal fails to go through, T-Mobile will pay US Cellular a termination fee of $60 million, Telephone and Data Systems said in a filing.

Verizon was in talks to also buy parts of the regional carrier, the Wall Street Journal reported earlier this month.