Yep, the merger of T-Mobile USA and MetroPCS is complete, and the combined company started trading today under the ticker TMUS. Deutsche Telekom still owns 74% of the company of course, but now has a bit of breathing room as its US division takes on the challenge of still being #4 in a tough business.
The combined company would have had $24.8B in revenues, $6.4B in adjusted EBITDA, $3.7B of capex exclusive of spectrum purchases, and $2.7B of free cash flow. It boasts 43 million subscribers, and plans to have LTE built out covering 200 million in population by the end of the year.
Looking ahead, they are projecting $6-7B net present value of synergies, and will be targeing compounded annual growth rates of 3-5% for revenues, 7-10% for EBITDA, and 15-20% for free cash flow.
It's been a long wait since the merger announcement, punctuated by a last minute adjustment to placate MetroPCS shareholders. Now they get their hands dirty actually operating the business and deciding what the next step is. Do they need further M&A for spectrum or scale or complementary assets? Or do they just need to generate some sales momentum?
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