AT&T has agreed to acquire Leap Wireless International for USD 15 per share in cash. AT&T will acquire all of Leap’s stock and mobile properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of 15 April this year, Leap also had USD 2.8 billion of net debt.
Leap shareholders will also receive a contingent right entitling them to the net proceeds received on the sale of Leap’s 700 MHz A Block spectrum in Chicago, which Leap purchased for USD 204 million in August 2012.
Leap's network covers approximately 96 million people in 35 US states. It operates under the Cricket brand a 3G CDMA network, as well as a LTE network covering 21 million people in these areas, and has 3,400 employees. AT&T will retain the Cricket brand name, provide Cricket customers with access to AT&T’s LTE mobile network, use Cricket’s distribution channels, and expand Cricket’s presence to additional cities across the US.
The acquisition includes spectrum in the PCS and AWS bands covering 137 million people and is complementary to AT&T's existing spectrum licences. Once the transaction is authorized, AT&T plans to use Leap's unused spectrum to boost its LTE deployment and provide additional capacity for customers’ growing mobile internet traffic.
Owners of approximately 29.8 percent of Leap’s outstanding shares have agreed to vote in favor of the transaction. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions. AT&T expects the transaction to close in six to nine months.
