Sprint Buys Virgin Mobile USA

Sprint Buys Virgin Mobile USA

941

Sprint Nextel has agreed to acquire Virgin Mobile USA, the company announced Tuesday.

The sale is a stock deal in which Sprint will pay $5.50 per share, a stated value of $483 million. The deal is expected to close in the fourth quarter of this year.

“The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment,” Sprint CEO Dan Hesse said as part of the announcement. “Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.”

Sprint, which already owns Boost Mobile, further expands its prepaid phone portfolio.

NO COMMENTS