After a temporary break from acquiring affiliates, Sprint Nextel Corp. is going forward with the purchase of a small Minnesota affiliate for $312.5 million, a number that includes the assumption of the rural carrier’s debt.
Northern PCS Services L.L.C. has more than 167,000 direct subscribers and more than 69,000 reseller customers, according to Sprint Nextel. The affiliate serves parts of Minnesota, North Dakota, Iowa and Wisconsin with around 1.8 million covered potential customers.
The acquisition is expected to close in the third quarter of 2007, pending regulatory approvals. Northern PCS has about 240 employees and its revenues for 2006 were $130 million.
The last affiliate Sprint Nextel acquired was UbiquiTel Inc. in mid-2006 for $1.3 billion. The company had indicated late last year that it needed to focus its attention and capital on improving its core business rather than acquiring affiliates.
Sprint Nextel renews chase for affiliates, snaps up Northern PCS for $312.5M
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