Verizon Wireless announced Thursday that it has entered into an agreement to acquire Alltel for US$5.9 billion, plus the assumption of debt, in a deal that will create the biggest mobile phone company in the United States.

Based on Alltel's projected net debt at closing of $22.2 billion, the aggregate value of the deal is $28.1 billion, Verizon said. The merger should be complete by the end of the year, pending regulatory approvals, Verizon said.

Verizon said the acquisition will give users access to an expanded range of products and services.

(More to come.)

The IDG News Service is a Network World affiliate.