The mass speculation on the possibility of an Alltel buyout came to an end today as the rural provider revealed it has accepted a $27.5 billion offer from two private equity firms to take the publicly owned mobile carrier off the market.

TPG Capital and Goldman Sachs Capital Partners have agreed to buy up all outstanding stock of Alltel at $71.50 a share. Alltel closed at $65.21 a share, after being pumped up for months on takeover rumors. Today its shares further jumped another 9% after the deal was revealed.

The deal is expected to close in the fourth quarter after a vote from Alltel’s shareholders at a special meeting and regulatory approval. The transaction will be a leveraged buyout, in which TPG and GSCP will borrow money for the buyout, subsequently placing that debt on Alltel’s books, and relying on Alltel’s strong cash flow to cover interest payments. Alltel’s balance sheet has been relatively modest despite recent acquisitions of other carriers, making it an attractive leveraged buyout target.

“This transaction delivers substantial and certain value to our shareholders while providing the company with long-term partners who share our commitment to our customers, employees and the communities we serve,” said Altel CEO Scott Ford in a statement. “TPG and GSCP are long-term investors who are willing to make the investments necessary to continue to grow our wireless business in all of our markets. This transaction also ensures our customers can continue to rely on Alltel to deliver high-quality service and leading edge products and services.” Ford will remain CEO after the deal closes.

Alltel is country’s largest Tier II provider, with 12 million customers concentrated in rural and small markets. Since December, the company has been the target of multiple buyout rumors, starting with speculation over a possible acquisition by Verizon Wireless. Early this month, Reuters and the Wall Street Journal reported several private investment groups were bidding on Alltel, including GSCP and TPG. Two other consortiums--one including the Blackstone Group and Providence Equity Partners, and the other formed by the Carlyle Group and Kohlberg Kravis Roberts--also reportedly bid on the company.