Verizon Buying Rural Cellular

Verizon Wireless agreed to buy Rural Cellular (RCCC Quote) for $45 a share in cash, or $720 million.

Verizon Wireless, a joint venture of New York's Verizon(VZ Quote) and Vodafone (VOD Quote) of the U.K., said the deal will expand its licensed service area population by 4.7 million.

"Verizon Wireless continually looks for opportunities to enhance our customers' wireless experience," said Lowell McAdam, president and CEO of Verizon Wireless. "The addition of Rural Cellular's markets will enable us to expand our services into areas where previously we had little or no presence, and will give Rural Cellular's Unicel customers access to the nation's most reliable network and a broader range of voice and data services."

The news comes just weeks after a published report revived the idea that Verizon and Vodafone may be discussing a possible separation, though the companies said last year that any issues for the fast-growing service had been put to rest.

Rural Cellular rose 18% in early trading, tacking on $5.56 to $37.37.