AT&T Inc. (NYSE: T) and prepaid wireless provider Leap Wireless International Inc. (NASDAQ: LEAP) have entered into an agreement for AT&T to acquire Leap for USD15 per share in cash.
Under the terms of the agreement, AT&T will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and approximately five million subscribers. As of April 15, 2013, Leap had USD2.8bn of net debt.
Leap's network covers approximately 96 million people in 35 US states. Leap currently operates, under the Cricket brand, a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas, and has 3,400 employees.
AT&T will retain the Cricket brand name, provide Cricket customers with access to AT&T's award-winning 4G LTE mobile network, utilize Cricket's distribution channels, and expand Cricket's presence to additional US cities. The result will be increased competition, better device choices, improved customer care and a significantly enhanced mobile Internet experience for consumers seeking low-cost prepaid wireless plans.
The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions. AT&T expects the transaction to close in six to nine months.
AT&T is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates AT&T operating companies are the providers of AT&T services in the United States and internationally.
Headquartered in San Diego, Calif, Leap provides innovative, high-value wireless services to a fast-growing, young and ethnically diverse customer base.
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