Prepaid wireless provider Leap Wireless International Inc., acquired by AT&T: there where are the stakes.
Leap Wireless International Inc is one of the major actors in this sector. Its lack of ability to innovate, create value and anticipate in real time has made this company to be highly leveraged ($2.8 billion of net debt). Since yesterday, it is official, AT&T has unveiled its intentions: acquire Leap for $15 per share in cash.
Connectikpeople has discovered that, under the terms of the agreement,
AT&T will acquire all of Leap’s stock and wireless properties, including
licenses, network assets, retail stores and approximately 5 million subscribers.
‘’ Leap shareholders will also receive a contingent right entitling them to
the net proceeds received on the sale of Leap’s 700 Mhz “A Block” spectrum in
Chicago, which Leap purchased for $204 million in August 2012’’.
AT&T will retain the Cricket brand name, provide Cricket customers with
access to AT&T’s 4G LTE mobile network, utilize Cricket’s distribution
channels, and expand Cricket’s presence to additional U.S. cities.
According to AT&T, the result will be increased competition, better device
choices, improved customer care and a significantly enhanced mobile Internet
experience for consumers seeking low-cost prepaid wireless plans.
Always under the terms of agreement, the acquisition includes spectrum in
the PCS and AWS bands covering 137 million.
In addition immediately after approval of the transaction, AT&T plans
to put Leap’s unutilized spectrum , which covers 41 million people , to use in
furthering its 4G LTE deployment and providing additional capacity and enhanced
network performance for customers’ growing mobile Internet usage.
Subject to review by the Federal Communications Commission and the
Department of Justice and to other customary closing conditions, AT&T
expects the transaction to close in six to nine months.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications
holding company and one of the most honored companies in the world. Its
subsidiaries and affiliates – AT&T operating companies – are the providers
of AT&T services in the United States and internationally. With a powerful
array of network resources that includes the nation’s largest 4G network,
AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice
and cloud-based services. A leader in mobile Internet, AT&T also offers the
best wireless coverage worldwide of any U.S. carrier, offering the most
wireless phones that work in the most countries. It also offers advanced TV
services under the AT&T U-verse® and AT&T |DIRECTV brands. The
company’s suite of IP-based business communications services is one of the most
advanced in the world.
About Leap
Leap provides innovative, high-value wireless
services to a fast-growing, young and ethnically diverse customer base. With
the value of unlimited wireless services as the foundation of its business,
Leap pioneered its Cricket service. Cricket products and services are available
nationwide through company-owned stores, dealers, national retailers and at
MyCricket.com. Through its affordable, flat-rate
service plans, Cricket offers customers a choice of unlimited voice, text, data
and mobile Web services. Headquartered in San Diego, Calif., Leap is traded on
the NASDAQ Global Select Market under the ticker symbol "LEAP."
