AT&T completed its previously announced acquisition of prepaid wireless provider Leap Wireless International Inc., which operates under the Cricket brand, for $15 per share in cash. 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 $204 million in August 2012.
Leap currently operates a 3G CDMA network, as well as a 4G LTE network covering 21 million people across 35 states. The company serves about 5 million prepaid mobile users under the Cricket brand. It currently ranks as the fifth largest mobile operator in the U.S. Its network currently covers approximately 97 million people in 35 U.S. states, and Cricket had 4.57 million customers as of February 28, 2014. Customer migrations are expected to be completed approximately 18 months after the launch of the new Cricket.
The deal would include all of Leap’s stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of April 15, 2013, Leap had $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 $204 million in August 2012.
AT& said it plans to integrate Cricket with its existing operations to create the "new Cricket" for the pre-paid market -- featuring a combination of simple, low-cost rate plans and smartphones.
In addition to Cricket’s operations, AT&T also acquired spectrum in the PCS and AWS bands covering nearly 138 million people. This spectrum is largely complementary to AT&T’s existing spectrum holdings and includes unutilized spectrum covering 41 million people. AT&T will immediately begin to put the unutilized spectrum to use to support 4G LTE services for its customers. This additional spectrum will provide additional capacity and enhance network performance for customers using smartphones and other mobile Internet devices.
http://www.att.com
Leap currently operates a 3G CDMA network, as well as a 4G LTE network covering 21 million people across 35 states. The company serves about 5 million prepaid mobile users under the Cricket brand. It currently ranks as the fifth largest mobile operator in the U.S. Its network currently covers approximately 97 million people in 35 U.S. states, and Cricket had 4.57 million customers as of February 28, 2014. Customer migrations are expected to be completed approximately 18 months after the launch of the new Cricket.
The deal would include all of Leap’s stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of April 15, 2013, Leap had $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 $204 million in August 2012.AT& said it plans to integrate Cricket with its existing operations to create the "new Cricket" for the pre-paid market -- featuring a combination of simple, low-cost rate plans and smartphones.
In addition to Cricket’s operations, AT&T also acquired spectrum in the PCS and AWS bands covering nearly 138 million people. This spectrum is largely complementary to AT&T’s existing spectrum holdings and includes unutilized spectrum covering 41 million people. AT&T will immediately begin to put the unutilized spectrum to use to support 4G LTE services for its customers. This additional spectrum will provide additional capacity and enhance network performance for customers using smartphones and other mobile Internet devices.
http://www.att.com
- Leap Wireless was founded in 1998 as a spin-off from Qualcomm. The company is based in San Diego.
