Sprint Nextel acquires affiliate

Sprint Nextel this week said it will buy wireless affiliate Alamosa Holdings for approximately $4.3 billion, including the assumption of approximately $900 million of net debt.

Under the terms of the agreement, Sprint Nextel will acquire all of Alamosa's outstanding common shares for $18.75 per share in an all-cash merger. The acquisition is subject to the approval of Alamosa shareholders and customary regulatory approvals, and is expected to be completed in the first quarter of 2006.

Alamosa was Sprint's largest PCS affiliate. The Lubbock, Texas, company provides Sprint PCS services in 19 states, serving approximately 1.48 million direct wireless subscribers in 242 customer service areas.

The deal effectively ends litigation between the two companies. On Aug. 8, Alamosa filed a complaint against Sprint regarding certain exclusivity covenants Sprint had with Alamosa's subsidiary AirGate.

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Sprint Nextel this week said it will buy wireless affiliate Alamosa Holdings for approximately $4.3 billion, including the assumption of approximately $900 million of net debt.

Under the terms of the agreement, Sprint Nextel will acquire all of Alamosa's outstanding common shares for $18.75 per share in an all-cash merger. The acquisition is subject to the approval of Alamosa shareholders and customary regulatory approvals, and is expected to be completed in the first quarter of 2006.

Alamosa was Sprint's largest PCS affiliate. The Lubbock, Texas, company provides Sprint PCS services in 19 states, serving approximately 1.48 million direct wireless subscribers in 242 customer service areas.

The deal effectively ends litigation between the two companies. On Aug. 8, Alamosa filed a complaint against Sprint regarding certain exclusivity covenants Sprint had with Alamosa's subsidiary AirGate.

As part of the agreement, Sprint Nextel and AirGate will seek an immediate stay of litigation pending in the Delaware Court of Chancery with a final resolution to become effective upon closing of the acquisition.

Alamosa employs about 1,300 people and had pro forma revenues of $1.3 billion for the 12 months ended Sept. 30, 2005.

With this acquisition, Sprint has announced agreements to acquire more than 2.3 million Sprint PCS affiliate customers.