UScellular to become Array Digital Infrastructure upon T-Mobile deal close

Published 25/07/2025, 03:52
UScellular to become Array Digital Infrastructure upon T-Mobile deal close

CHICAGO - United States Cellular Corporation (NYSE:USM) announced Thursday that it will rename itself Array Digital Infrastructure, Inc. and appoint Douglas W. Chambers as interim President and CEO following the completion of its wireless operations sale to T-Mobile US, Inc. The announcement comes as parent company Telephone and Data Systems (TDS) shows strong market performance, with its stock up over 95% in the past year according to InvestingPro data.

The transaction with T-Mobile is expected to close on August 1, 2025, subject to satisfaction of closing conditions. Chambers, who currently serves as Executive Vice President, Chief Financial Officer and Treasurer of UScellular, will oversee the company’s portfolio of 4,400 owned towers, noncontrolling investment interests, and retained wireless spectrum. Want deeper insights into this transformative deal? InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks including TDS.

"Doug brings decades of industry experience and a robust understanding of the company’s strategy and overall operations," said LeRoy T. Carlson, Jr., UScellular Board Chair, in a press release statement.

The company also plans to change its NYSE ticker symbol from "USM" to "AD" for its Common Stock. UScellular has traded under the USM symbol since its initial public offering in 1987.

Array Digital Infrastructure is expected to remain headquartered in Chicago.

In a separate announcement, UScellular indicated its board of directors is expected to approve a special cash dividend ranging from $22.50 to $23.75 per Common Share and Series A Common Share following the wireless operations sale closing.

Telephone and Data Systems, Inc. (NYSE:TDS) owned approximately 83 percent of UScellular as of March 31, 2025, according to the company. TDS, currently trading near its 52-week high of $41.21, maintains a healthy financial position with a current ratio of 1.74 and a market capitalization of $4.57 billion. InvestingPro analysis reveals the company has maintained dividend payments for an impressive 52 consecutive years.

In other recent news, United States Cellular Corporation announced it expects to issue a special cash dividend ranging from $22.50 to $23.75 per share. This dividend, amounting to between $1.95 billion and $2.075 billion, is contingent upon the completion of its wireless operations sale to T-Mobile US, Inc., and requires board approval. The U.S. Department of Justice has closed its antitrust investigation into this transaction, though it still awaits approval from the Federal Communications Commission. Additionally, Telephone & Data Systems Inc., the parent company of UScellular, has entered into a Fourth Amended and Restated Credit Agreement involving CoBank, ACB as Administrative Agent, and other lenders, creating a direct financial obligation for UScellular.

In leadership changes, Telephone & Data Systems announced Ken Dixon as the new President and CEO of TDS Telecommunications LLC, succeeding Jim Butman, who retired after over 40 years with the company. Dixon brings extensive experience from his previous role at Verizon Communications, where he served as President of Consumer Markets. Furthermore, Telephone & Data Systems detailed a transition agreement with Butman, which includes a $2,000,000 lump sum payment and a prorated portion of his target annual bonus for 2025. These developments mark significant changes for both United States Cellular Corporation and its parent company, Telephone & Data Systems.

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