Consumer Cellular has been acquired by a Chicago-based private equity firm called GTCR. The terms of the acquisition were not disclosed. But there are reports that suggest the company was purchased for $2.3 billion. The acquisition is expected to be officialized by the end of the year.
When the transaction is closed, its existing shareholders will be keeping a “significant” minority position in the company. For starters, its founder, John Marick will retire from his role and continue as an ongoing shareholder and board member. He will be succeeded by Ed Evans.
"Mr. Evans is an accomplished executive in the wireless space with more than three decades of experience including partnering with GTCR in its prior investment in Syniverse Technologies. Mr. Evans succeeds Consumer Cellular founder John Marick who has served as the Company's CEO since inception. Mr. Marick will remain a substantial shareholder of the Company and remain on the board of directors."
"John and the Consumer Cellular team have built a tremendous business that is well-positioned for long-term success. The entire Consumer Cellular organization should be proud of the business they have built. We look forward to Ed working with the Company and its employees to continue Consumer Celullar's legacy of growth and innovation."
As for the employees of the MVNO, which reach to 2,000, the company promises that they will be receiving a portion of the proceeds throughout next year. Eligible employees will be getting up to the equivalent of 1.5 year worth of their annual salary.
The Oregon-based MVNO was founded by a couple of friends in 1995 by Marick and Greg Pryor. 25 years later and the MVNO now focuses on the older demographic. It has since grown to serve over 4 million customers.
Consumer Cellular is an MVNO that uses the networks of AT&T and T-Mobile.
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