AirGate has been attracted in part by large companies in iPCS’s territory, such as State Farm Insurance and Dow Chemical, and by the potentual to expand its customer base to 300,000.
The deal will also make Blackstone Group, one of iPCS’s largest backers, a significant shareholder in AirGate, which has offered one board seat to Blackstone and three to iPCS directors.
SprintPCS must yet approve the merger. Sprint does not have an investment stake in AirGate, but under a reselling agreement, it provides the company with wireless spectrum and the ability to market its services under the Sprint brand.
