Sprint (NYSE:S) and Clearwire (UNKNOWN:UNKNOWN) announced today that Sprint will acquire the roughly 50% stake in Clearwire it doesn't already own, giving it 100% ownership of the wireless broadband company at a price slightly bumped up from last week's offer.
Per the definitive agreement between the two companies, Sprint will spend approximately $2.2 billion to purchase the remaining Clearwire shares. At $2.97 per share, the deal represents an approximately 40% premium over Clearwire's closing price the day before receipt of Sprint’s initial $2.60-per-share nonbinding indication of interest on Nov. 21.The accepted proposal is up from the $2.90 per share offered last week.
Clearwire CEO and President Erik Prusch said in a statement, "Our board of directors has been reviewing available strategic alternatives over the course of the last two years. In evaluating available alternatives, a special committee conducted a careful and rigorous process, and based on the committee's recommendation, our board unanimously determined that this transaction, which delivers certain and attractive value for our shareholders, is the best path forward."
According to the company announcement, Sprint is "uniquely positioned" to leverage Clearwire's 2.5 GHz spectrum assets, and will ultimately increase the corporation's competitiveness in the U.S. wireless industry. The transaction requires regulatory approval and approval from Clearwire shareholders. The companies expect to close the deal in mid-2013.
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