AT&T completed its US$1.2bn acquisition of Leap Wireless after market close yesterday following FCC approval.
The deal, which including debt rises to US$4bn, was agreed last July and will see AT&T move into the prepaid market where Leap operates the…
AT&T completed its US$1.2bn acquisition of Leap Wireless after market close yesterday following FCC approval.
The deal, which including debt rises to US$4bn, was agreed last July and will see AT&T move into the prepaid market where Leap operates the Cricket brand and has 4.57 million customers.
Leap shareholders approved the deal last October and the telco will now be delisted from the Nasdaq and consolidated by AT&T.
In the FCC’s ruling on the transaction it said AT&T had offered to divest spectrum in certain markets and to offer “certain rate plans targeted to help value-conscious and Lifeline customers”.
Cricket’s network currently covers 97 million people across 35 states. AT&T said that Cricket will now cover close to 280 million people via its 4G LTE network.
In addition to Cricket, AT&T also acquired spectrum in the PCS and AWS bands covering nearly 138 million people.
Earlier this month the Dallas-based giant priced a US$2.5bn triple-tranche bond to fund pending spectrum and wireless acquisitions.
AT&T has been looking to enter Europe and has been repeatedly reported to be eyeing up British telco Vodafone Group. However, the company appears to be cooling on the idea after CEO Randall Stephenson and CFO John Stephens both said in the last week that the window to do a wireless deal in Europe may be closing.
AT&T’s plan would be to roll-out 4G LTE networks as it has done in the US, but Stephens has noted that other providers are now upping their investment so the window for the company to enact its strategy may be closing.
Lazard served as sole financial adviser to Leap and Wachtell, Lipton, Rosen & Katz served as legal counsel.
Evercore Partners was financial adviser to AT&T while Sullivan & Cromwell served as counsel.
