Sprint Corp. closed on its $35 billion acquisition of Nextel Communications Inc. in a deal that will strengthen its position as the industry’s third-largest wireless operator with nearly 40 million direct subscribers and 44 million customers, including network partners.
“This is a great day for our investors, customers, employees and partners,” said Gary Forsee, president and chief executive officer of Sprint Nextel. “Through a broad portfolio of product and service offerings and a passion for meeting the needs of our customers, Sprint Nextel expects to win in the market. As we look to the future, Sprint Nextel will provide customers innovative wireless data services with media and entertainment content augmented by a global IP network that provides consumer, business and government customers compelling integrated communications solutions.”
Sprint announced earlier this week that it would close on the transaction today after receiving all governmental approvals last week. The final approval came from the Federal Communications Commission and did not require either Sprint or Nextel to divest any network assets, spectrum or customers before approving the deal.
Sprint Nextel had previously announced that it would use the Sprint name for its consumer branding efforts with the Nextel name continuing as a branding name surrounding iDEN-related services.
As part of the acquisition, each outstanding share of Nextel common stock will be converted into a combination of Sprint Nextel common stock and cash with a value equal to 1.3 shares of Sprint Nextel common stock. The preliminary calculations of the stock-exchange ratio, cash ratio and per-share cash merger consideration for Nextel common stock are expected to be announced prior to the stock market opening Monday.
Sprint added that it has begun the process of spinning off its local wireline operations in a tax-free transaction to Sprint Nextel shareholders and expects to close the spin-off next year.
