Japanese mobile operator Softbank has agreed to acquire its smaller rival eAccess for JPY 180 billion. The acquisition gives Softbank access to spectrum in the 1.7GHz band to expand its LTE coverage. With the takeover of eAccess' 4.2 million customers, Softbank also will pass KDDI to become the second-largest mobile operator in Japan, with a total of over 39 million customers, based on end-August figures including its PHS affiliate Willcom. Softbank is offering JPY 52,000 per share for eAccess, payable in Softbank shares; this is more than three times the eAccess share price the day before the announcement. In addition to the JPY 180 billion in equity, Softbank will assume JPY 185 billion in debt at eAccess. The company expects cash flow synergies of JPY 360 billion from the deal, including JPY 200 billion from the expansion in customer numbers, JPY 110 billion from network integration and JPY 50 billion from other cost savings.
