Leap expands in Southeast through $30M acquisition: Carrier to release Q3 results tomorrow

Leap Wireless International Inc. said that it plans to acquire Hargray Communications Group Inc.’s wireless operations for $30 million, expanding Leap’s Cricket service into Savannah, Ga. and Hilton Head, S.C.
The deal includes Hargray’s 15 megahertz spectrum license, wireless network and most of its wireless customer base-except Hargray customers who have bundled wireline and wireless service. The two companies have agreed that those customers will stay with Hargray but will receive Cricket service through a wholesale agreement.
Leap did not disclose how many customers it will acquire through the transaction.
Hargray’s wireless license covers about 817,000 potential customers, and the company’s network covers 695,000 pops.
“By purchasing Hargray’s wireless business we are able to not only increase our speed to market but also avoid much of the cost associated with building a market from the ground up,” said Leap President and CEO Doug Hutcheson. “Hargray’s footprint in the Savannah, Hilton Head and surrounding areas complements our newly launched Charleston, S.C. market as well as our existing Carolinas cluster.”
Leap expects the transaction to close in the first half of next year.
The carrier’s stock was up around 8% on the news.
In a separate announcement, Leap said it would release its third-quarter financial results tomorrow afternoon. Leap had previously warned investors that it would need to restate its results for most of the past four years.