Sprint Nextel today announced an agreement with affiliate “Enterprise Communications” to purchase the small affiliate in a deal valued at about $100 million. The deal continues the recent spate of acquisitions by Sprint Nextel Corporation as the merged company continues to deal with the various agreements it had established with affiliates throughout the country.
Enterprise Communications is based out of Columbus, GA, and provides services to approximately 52,000 customers in Alabama and Georgia. Once the acquisition is complete, Sprint Nextel will have extended its direct service to a population of 825,000 potential subscribers. The 52,000 already subscribed via Enterprise Communications will, of course, become direct customers of Sprint Nextel.
The terms of the deal call for Sprint Nextel to acquire Enterprise Communications for $98 million, including the assumption of the 80-employee company’s debt. In addition, $2 million will be spent to purchase C-block frequency licenses currently held by an affiliate of Enterprise Communications.
Standard regulatory approvals aside, the acquisition is expected to complete in the first quarter of 2006.