Softbank in US$1.26bn deal for Brightstar majority

Japanese mobile giant Softbank has agreed to pay US$1.26bn for 57% of US-based telecoms retailer Brightstar, with options to up its stake to 70% within five years.
The Tokyo-headquartered group said the cash deal will bolster its foothold in the US,…

Japanese mobile giant Softbank has agreed to pay US$1.26bn for 57% of US-based telecoms retailer Brightstar, with options to up its stake to 70% within five years.

The Tokyo-headquartered group said the cash deal will bolster its foothold in the US, where it recently completed a takeover of number three telco Sprint.

Announcing the deal on 19 October, Softbank stated: “By making Brightstar a subsidiary, Softbank aims to strengthen its purchasing scale for mobile devices and further increase competitiveness both in Japan and the US.”

The privately-held handset distributor provides services in over 125 countries and has a local presence in 50 of them.

The deal will see Softbank take an initial 57% stake of a US company that will wholly-own Brightstar. Marcelo Claure, the retailer’s founder and CEO, will take the rest of that US holding company.

Masayoshi Son, Softbank’s CEO, will become chairman of Brightstar, while Claure will remain as CEO.

The parties expect to close the deal before the end of this year following regulatory approvals.

Softbank has been on a multibillion dollar acquisition drive with the US$21.6bn takeover of Sprint in July.

It spent around US$500m last month to increase its holding in Sprint to just over 80%, and recently launched a US$1.53bn deal for a 51% stake in Supercell, the Finnish mobile game developer.