AT&T to buy wireless company in Mexico for $1.8 billion

NEW YORK – AT&T is buying Mexican wireless company Iusacell for $1.8 billion and plans to grow in Mexico.

The Dallas company said Friday that Iusacell has 8.6 million subscribers under the Iusacell and Unefsn brand names. AT&T had 116.6 million subscribers as of June 30.

AT&T values the deal at $2.5 billion when debt is included.

The company sees potential for growth in Mexico because of its rising population and middle class, even as the proportion of Mexican people with wireless service lags other Latin American countries, according to AT&T.

“Mexico is still in the early stages of mobile Internet capabilities and adoption, but customer demand for it is growing rapidly,” said AT&T CEO Randall Stephenson in a statement.

AT&T Inc. shares rose 19 cents to $34.91 on Friday and gained 9 cents to $35 in aftermarket trading.