Sprint Nextel agreed to acquire iPCS for approximately $831 million, including the assumption of $405 million of net debt. The deal provides Sprint with more than 700,000 PCS wireless users and 270,000 wholesale customers. iPCS’s services are currently sold under the Sprint brand name and in Sprint-branded stores.
As part of the agreement, Sprint Nextel and iPCS will seek an immediate stay of all pending litigation between the parties with a final resolution to become effective upon closing of the acquisition. As a result, Sprint will no longer be required to divest its iDEN network in certain iPCS territories and will terminate its previously announced divestiture process pending closing of the transaction.
Under the terms of the agreement, Sprint Nextel will commence a cash tender offer to acquire all of iPCS’ outstanding common shares for $24.00 per share. This price per share represents a 34 percent premium to iPCS’ closing stock price as of October 16, 2009.
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