Mary-Louise Hoffman
AT&T has agreed to acquire Leap Wireless International, parent company of prepaid wireless provider cricket, for $15 per share in cash as AT&T looks to expand into the prepaid mobile segment.
Leap operates under the Cricket brand name and runs 3G CDMA and 4G LTE networks covering 21 million people across 35 U.S. states, AT&T said Friday.
AT&T will take over Leap’s stock properties, network assets, licenses, retail shops and 5 million subscribers.
Under a signed agreement, Leap shareholders will have a contingent right to net proceeds from the sale of the carrier’s 700 megahertz A-block spectrum in Chicago.
AT&T intends to use Leap“™s unused spectrum to increase its own 4G LTE network upon completion of the transaction.
The deal is subject to regulatory approvals and other customary closing conditions and AT&T expects to complete the transaction within six to nine months.
