Deutsche Telekom AG will hold 74 percent of the new business. MetroPCS's shareholders will have the remaining stake and receive a payment of about $1.5 billion.
"We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom's position in the expanding U.S. wireless market," said Rene Obermann, Chief Executive Officer of Deutsche Telekom. "The T-Mobile and MetroPCS brands are a great strategic fit - both operationally and culturally. The new company will be the value leader in wireless with the scale, spectrum and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network. We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment."
The company will operate T-Mobile and MetroPCS as separate customer units. After closing, the company's headquarters will be in Bellevue, Washington and it will retain a significant presence in Dallas, Texas.
Dallas-based MetroPCS has 9.3 million subscribers but the transaction still leaves T-Mobile USA with 33.2 million subscribers - trailing the market's No. 3, Sprint Nextel Corp.