Wireless operator AT&T is set to buy Straight Path Communications Inc. for $1.6 billion to boost its 28 GHz and 39 GHz millimeter wave spectrum.

Straight Path shareholders will receive $1.25 billion, or $95.63 per share, which will be paid using AT&T stock.

Straight Path Communications CEO Davidi Jonas said: “The merger of AT&T and Straight Path Communications provides Straight Path shareholders with a compelling return since Straight Path’s spin-off to become an independent public company in 2013, with an initial price per share of $6.40 on July 31, 2013.”