Sprint Nextel to buy wireless affiliate for $3.4B

Sprint Nextel is set to buy one of its wireless affiliates for an estimated $3.4 billion in a move to settle outstanding breach of contract issues following Sprint's acquisition of Nextel. The acquisition of Alamosa Holdings is worth a total of $4.3 billion, including $900 million in net debt. Alamosa shareholders will receive $18.75 per share in cash as a result of the acquisition. Alamosa claims to be the largest Sprint Nextel affiliate with 1.48 million direct wireless subscribers. Alamosa shareholders still must approve the acquisition. If the deal goes through, Sprint will have acquired 2.3 million Sprint PCS affiliate subscribers.

In August Alamosa filed a complaint against Sprint Nextel over breach of contract agreements the carrier had allegedly violated following the merger with Alamosa's subsidiary AirGate. Sprint is still in court with affiliate Nextel Partners, which the carrier must also buy. The acquisition is still stuck in the valuation process.

For more on the Sprint Nextel affiliate acquisition:
- read this article from the AP
- check out this press release

Sponsored by ADI

What if we were always connected? With the help of our advanced wireless technology, even people in the most remote places could always be in touch.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

Ericsson's latest Mobility report finds that an average of 64% of service providers globally offer fixed wireless access (FWA) service.

The U.K. on Monday set out a roadmap for removing Huawei equipment from 5G networks and outlined a new strategy to diversify the supply chain.

The outgoing FCC chair says he's giving subscribers more free data, but providers say they'll actually get less.