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Is it true that Sprint Nextel is going to buy Virgin Mobile USA?

April 26, 2017buy going mobile Nextel Sprint USA Virgin

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Is it true that Sprint Nextel is going to buy Virgin Mobile USA?

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Telecommunications company Sprint Nextel Corp. has agreed to acquire Virgin Mobile USA Inc. in a stock deal valued at $5.50 per share in a bid to expand its prepaid cell phone offerings. Sprint values the deal at $483 million, including Sprint’s existing 13.1 percent stake in Virgin Mobile. The transaction represents a 31 percent premium to Virgin Mobile’s Monday closing share price of $4.21. When the deal closes, Sprint will retire Virgin Mobile USA’s outstanding debt, which is expected to be no more than $205 million on Sept. 30. The deal allows Sprint to expand its prepaid cell phone offerings, bringing together the Virgin Mobile brand with its current Boost Mobile business. Sprint plans to issue between 81.4 million and 104.7 million shares in exchange for all Virgin Mobile USA common and preferred stock that it does not already own.