Sprint Nextel said it will acquire yet another affiliate, Enterprise Communications Partnership, for about $100 million, including debt. As part of the deal, Sprint paid $2 million for wireless spectrum licenses held by an Enterprise Communications affiliate. Sprint stands to gain 52,000 wireless subscribers in Alabama and Georgia. Excluding the spectrum licensing agreement, Sprint valued the deal at about 7.8 times Enterprise Communications' projected 2006 adjusted operating income before depreciation and amortization, which is currently $12.6 million.
The Enterprise Communications deal marks the latest Sprint acquisition in an attempt to settle disputes over noncompete concerns affiliates raised after the merger with Nextel. Sprint has already agreed to acquire Alamosa Holdings, its largest wireless affiliate, for $3.4 billion. In August, the company said it would buy two small cell phone operators that sell Sprint service, IWO Holdings and Gulf Coast Wireless.
For more on the Sprint affiliate deal:
- check out this AP article