“AT&T is paying $15 a share in cash for Leap, a prepaid cellphone service provider — a premium of 88 percent from Leap’s closing price on Friday,” Alden reports. “Under the terms of the deal, AT&T would gain 5 million new customers and acquire Leap network, licenses and retail stores. Leap had $2.8 billion of net debt as of April 15.”
Alden reports, “Leap, based in San Diego, operates under the Cricket brand name, which AT&T plans to retain. Its network covers about 96 million people in 35 states. ‘Cricket’s employees, operations and distribution will jump start AT&T’s expansion into the highly competitive prepaid segment,’ said Brad Burns, AT&T spokesman… If the deal goes through, Cricket customers will get access to AT&T’s 4G mobile network, and AT&T will expand Cricket’s reach. For AT&T, the deal will give it access to the prepaid market.”
Read more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]