It’s been a few months since AT&T announced its plans to acquire Nextel Mexico, but the $1.875 billion acquisition wasn’t official until last night. This marks the American company’s second acquisition of a major Mexican wireless carrier, the first being Iusacell, which AT&T acquired for $2.5 billion. AT&T plans to integrate the two carriers into a single company, which will lead AT&T’s expansion into Latin America’s second-largest economy.
AT&T has completed its acquisition of companies operating under the name Nextel Mexico from NII Holdings, Inc., including spectrum licenses, network assets, retail stores and subscribers in Mexico, for $1.875 billion, less approximately $427 million of net debt and other adjustments. Earlier this year, AT&T acquired Mexican wireless provider Iusacell. AT&T will integrate Iusacell and Nextel into one company focused on bringing more choices, better service and faster mobile Internet speeds to more locations throughout Mexico. AT&T plans to create the first-ever North American Mobile Service area, which will cover more than 400 million consumers and businesses in Mexico and the United States. Thaddeus Arroyo, Chief Executive Officer for AT&T Mexico, LLC and Iusacell, will lead the combined company. Mexico is the second-largest economy in Latin America and has a growing middle class. This economic strength, combined with Mexico’s close geographic, economic and cultural ties to the U.S., make it an attractive place for AT&T to invest.