T-Mobile US (NASDAQ: TMUS) and Sprint Corporation (NYSE: S) have announced they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share, the company said.
Based on closing share prices on April 27, this represents a total implied enterprise value of approximately USD 59 billion for Sprint and approximately USD 146 billion for the combined company. The new company will have a strong closing balance sheet and a fully funded business plan with a strong foundation of secured investment grade debt at close.
The combined company will be named T-Mobile, with a network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable US firms and entrepreneurs to continue to lead the world in the coming 5G era, as US companies did in 4G.
The combined company promises lower costs, greater economies of scale, and the resources to provide US consumers and businesses with lower prices, better quality, unmatched value, and greater competition. The New T-Mobile will employ more people than both companies separately and create thousands of new American jobs.
As America´s Un-carrier, T-Mobile US, Inc. is redefining the way consumers and businesses buy wireless services through product and service innovation. Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 72.6 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, visit http://www.t-mobile.com.
Sprint (NYSE: S) is a communications services company that creates more and better ways to connect its customers to the things they care about most. Sprint served 54.6 million connections as of Dec. 31, 2017, and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone.