Sprint Nextel Corp. is acquiring one of its affiliates, Alamosa Holdings Inc., for $4.3 billion, or $18.75 per share.
"This acquisition closes a long partnership with the management and shareholders of Alamosa," explains Gary Forsee, president and CEO of Sprint Nextel. "As the largest PCS affiliate, we appreciate their efforts over the years to grow Sprint's business and we look forward to continuing a strong relationship with their customers. This transaction will significantly expand our direct customer base and territory, and will provide additional value for our shareholders."
Sprint Nextel will assume $900 million of Alamosa’s debt. Alamosa shareholders still need to agree to the deal, which also must receive the typical regulatory approvals. Sprint Nextel expects to close the deal in the first quarter of next year.
Alamosa Holdings, based in Lubbock, Texas, provides Sprint PCS services in 19 states to nearly 1.5 million subscribers. It is Sprint’s largest PCS wireless affiliate.
Alamosa is the fourth affiliate Sprint Nextel has bought since Sprint Corp. purchased Nextel Communications Inc. in August for $35 billion, creating the nation's third-largest wireless company.
