Sprint Nextel to Buy Midwest Affiliate iPCS in $831M Deal

Authored by Mark Hefflinger on October 19, 2009 - 8:26am.

Reston, Va. - Ending years of litigation over territory rights, Sprint Nextel (NYSE: S) said on Monday that it will acquire Midwest affiliate iPCS in a deal worth $831 million. Under the agreement, Sprint Nextel will launch a cash tender offer for the Illinois-based company, paying $24 a share. The acquisition is expected to be completed by late this year or early 2010.

As a result, Sprint no long will be required to divest its iDEN network in certain iPCS territories, and plans to terminate its previously announced divestiture process.

"Acquiring iPCS brings added value to Sprint by expanding our direct customer base, growing our direct coverage area and simplifying our business operations," said Dan Hesse, the CEO of Sprint Nextel.

The two companies had been in litigation since shortly after Sprint's acquisition of Nextel Communication sin 2005.

Related Links:
http://snipurl.com/sln1k

http://snipurl.com/sln1k

http://www.ipcswirelessinc.com/