ARC Associates ("ARC"), a specialist investment banking and advisory firm to the TMT, financial services and property sectors has acted as financial advisor to Sonera, an international forerunner in mobile communications, on its acquisition of 10.5 million shares of Aerial Communications, Inc ("Aerial") for $230 million.
This transaction fell in line with Sonera's strategy to invest in a nation-wide U.S. GSM network. Following the 20 September 1999, confirmation of the announcement of the merger of Aerial with VoiceStream Wireless Corporation ("VoiceStream") was released. Sonera agreed to invest an additional $230 million into Aerial prior to completion. This merger will effectively consolidate three of the four publicly traded U.S. GSM regional wireless operators into one company, as VoiceStream at present is in the process of merging with Omnipoint Corporation.
Sonera has also agreed to make a further $500 million investment in VoiceStream at the completion of the merger of VoiceStream and Onmipoint.
In a separate transaction on 15 September 1999, Sonera completed the acquisition of Ericsson Inc.'s equivalent 9% shareholding in Powertel, Inc, the fourth publicly traded U.S.GSM wireless operator, for $123 million.
Commenting, John Allen the Chairman of ARC, "This transaction continues an established strategy developed by Sonera to increase its participation in the U.S. GSM mobile services sector."
Sonera is an international leader in mobile communications, mobile-based services and applications who employs more than 11,200 people. By combining its expertise in mobile communications, the Internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services.
ARC Associates is a specialist investment banking and advisory firm to the telecommunications, media, technology, financial services and property sectors.
Contact:
John Allen, Chairman
ARC Associates
+ 44 (0) 20 7614 4000