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Sprint acquires Virgin Mobile USA for $483mJul 30, 2009 (Datamonitor via COMTEX) -- Telecoms services provider Sprint Nextel has agreed to acquire Virgin Mobile USA for approximately $483m to expand its footprint in the prepaid market segment. The company already owns 13.1% stake in Virgin Mobile USA, and will now acquire the shareholdings of Virgin Group and SK Telecom. Upon completion of the acquisition in the fourth quarter of 2009 or early 2010, Sprint plans to retire all of Virgin Mobile USA's outstanding debt. It also plans to manage the Virgin Mobile and Boost Mobile businesses separately. Its prepaid business will be led by Dan Schulman, who is currently chief executive of Virgin Mobile USA. Sprint will also pay $12.7m to license the Virgin Mobile USA brand from the Virgin Group through the end of 2021, with the option to renew the license until 2047. It said the acquisition will enable it to cross-sell products and services to a larger target audience. Sprint CEO Dan Hesse said: "The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment. Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand." Earlier this month Virgin sold its 50% stake in Virgin Mobile Canada to Bell Canada. http://www.datamonitor.com Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon |