Softbank confirms Sprint acquisition

SOFTBANK CORP. and Sprint Nextel Corporation have entered into a series of definitive agreements under which SOFTBANK will invest approximately US$ 20.1 billion (approximately JPY 1 trillion 570.9 billion) in Sprint, consisting of approximately US$ 12.1 billion to be paid to Sprint shareholders and US$ 8.0 billion of new capital to be used, amongst other purposes, to strengthen Sprint’s balance sheet.

The companies expect the closing of the transaction to occur in mid-2013. As a result of the transaction SOFTBANK will own approximately 70% of the fully-diluted shares of New Sprint, which will own 100% of the shares of Sprint. Sprint will become a wholly-owned subsidiary of New Sprint.

Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012. The company offered the first wireless 4G service from a national carrier in the United States and manages prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless. Sprint Nextel also operates a global Tier 1 Internet backbone.

Sprint’s current CEO Dan Hesse will be the CEO of New Sprint, and the company's headquarters will continue to be in Overland Park, Kansas.