Sprint Nextel Corp. (NYSE: S) announced today an agreement to acquire Northern PCS Services, LLC, for $312.5 million, including the assumption of debt. The acquisition is subject to customary regulatory approvals and is expected to be completed in the third quarter of 2007. Northern PCS, based in Waite Park, Minnesota, provides Sprint PCS services in certain small to mid-size markets in Minnesota, North Dakota, Wisconsin and Iowa, serving more than 167,000 direct wireless subscribers and more than 69,000 reseller subscribers in a coverage area of more than 1.8 million people. It employs about 240 people and had revenues for the twelve months ended December 31, 2006 of $130 million.
RESTON, Va. — 06/13/2007
Sprint Nextel Corp. (NYSE: S) announced today an agreement to acquire Northern PCS Services, LLC, for $312.5 million, including the assumption of debt. The acquisition is subject to customary regulatory approvals and is expected to be completed in the third quarter of 2007. About Northern PCS
Northern PCS, based in Waite Park, Minnesota, provides Sprint PCS services in certain small to mid-size markets in Minnesota, North Dakota, Wisconsin and Iowa, serving more than 167,000 direct wireless subscribers and more than 69,000 reseller subscribers in a coverage area of more than 1.8 million people. It employs about 240 people and had revenues for the twelve months ended December 31, 2006 of $130 million.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks serving 53.6 million customers at the end of the first quarter 2007; industry-leading mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1 Internet backbone. For more information, visit http://www.sprint.com/.
Advisors
Sprint Nextel's financial advisor for the transaction was Citi, and its principal legal advisor was King & Spalding LLP. Northern PCS owners’ financial advisor was Stifel, Nicolaus & Company, Incorporated, and its principal legal advisor was Leonard, Street and Deinard PA.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements regarding Sprint Nextel’s intended acquisition of Northern PCS are forward-looking statements. The discussion of these forward-looking statements is qualified by the inherent risks and uncertainties surrounding future expectations. Actual future experience may materially differ from current expectations. Risks and uncertainties include: the result of the review of the proposed acquisition by various regulatory agencies, any conditions imposed in connection with consummation of the acquisition; satisfaction of various other conditions to the closing of the acquisition contemplated by the acquisition agreement; and the risks that have been described from time to time in Sprint Nextel's report filed with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2006. This document speaks only as of its date, and Sprint Nextel disclaims any duty to update the information herein.