The carrier has reached an agreement to buy the prepaid wireless provider, which operates the Cricket brand, for $15 a share in cash.
July 12, 2013 2:32 PM PDT
(Credit: Lynn La/CNET)
AT&T announced Friday that it will acquire prepaid wireless provider Leap Wireless in a deal valued around $1.2 billion.
The carrier has agreed to pay $15 a share in cash for Leap, which operates under the Cricket Wireless brand. Under the agreement, AT&T will get Leap's wireless properties, including its licenses, network assets, and stores, as well as its subscribers, which number around 5 million. AT&T also will keep the Cricket brand.
"The combined company will have the financial resources, scale and spectrum to better compete with other major national providers for customers interested in low-cost prepaid service," according to the press release Friday.
Leap's stock closed at $7.98, up 20 cents a share, on Friday.
AT&T expects the acquisition, which is subject to review by the FCC and the U.S. Department of Justice, to close in six to nine months.
July 12, 2013 2:32 PM PDT
AT&T announced Friday that it will acquire prepaid wireless provider Leap Wireless in a deal valued around $1.2 billion.
The carrier has agreed to pay $15 a share in cash for Leap, which operates under the Cricket Wireless brand. Under the agreement, AT&T will get Leap's wireless properties, including its licenses, network assets, and stores, as well as its subscribers, which number around 5 million. AT&T also will keep the Cricket brand.
"The combined company will have the financial resources, scale and spectrum to better compete with other major national providers for customers interested in low-cost prepaid service," according to the press release Friday.
Leap's stock closed at $7.98, up 20 cents a share, on Friday.
AT&T expects the acquisition, which is subject to review by the FCC and the U.S. Department of Justice, to close in six to nine months.