Sprint to Buy Virgin Mobile
8:45 AM -- Sprint Corp. (NYSE: S) moved to beef up its pay-as-you-go customer base with an agreement to acquire Virgin Mobile USA Inc. (NYSE: VM) in a deal announced this morning.
Sprint will acquire Virgin Mobile for an equity value of $483 million, which includes Sprint's 13.1 percent share in the service provider. When the deal closes, Sprint will retire all of Virgin Mobile's outstanding debt, which was $248 million net of cash and cash equivalents at the end of March.
Virgin's CEO Dan Schulman will head up Sprint's pay-as-you-go business, which will include the Virgin brand of services as well as Sprint's own Boost Mobile services.
— Michelle Donegan, European Editor, Unstrung