Virgin Mobile USA to Acquire Helio for $39 Million in Stock

Authored by Mark Hefflinger on June 27, 2008 - 9:17am.

Warren, N.J. - Virgin Mobile USA, the wireless telecom services provider, has signed a deal to acquire Helio, a wireless services joint venture between EarthLink (NASD: ELNK) and SK Telecom, for about $39 million in Virgin Mobile stock. Helio has about 170,000 existing subscribers with an average revenue per user of about $80, and a handset inventory of about 85,000 units with a book value of about $17 million.

With the acquisition of Helio, Virgin Mobile USA said, it will gain "an established and highly advanced postpaid billing and customer care platform."

The acquisition is expected to increase Virgin Mobile USA's volume of minutes and drive down the company's cost per minute under an amendment to its PCS Services agreement with Sprint, the company said.