Sprint Nextel to acquire UbiquiTel Inc.

Sprint Nextel is continuing their buying spree to avoid problems from their ex-affiliates after the merger between Sprint and Nextel. They have announced their plans to buy wireless affiliate UbiquiTel Inc. This deal is worth around $1 billion and would help them to resolve a merger-related dispute between the companies.

This happens to be the sixth such deal where Sprint has agreed to purchase to overcome breaches of its other affiliates’ exclusive rights to use the Sprint brand in their operating regions.

Sprint would be paying $10.35 per share in cash for all UbiquiTel’s shares. This is a minor premium on the company’s share as per prevailing prices in the stock market. The deal also sees Sprint assuming around $300 million of UbiquiTel net debt.

UbiquiTel on their part reported that they ended the first quarter with 452,000 direct wireless subscribers and 151,000 wholesale customers.