Sprint Nextel Acquires Alamosa For $4.3 Billion

MANHASSET, N.Y. — Sprint Nextel Corp. has agreed to acquire it wireless subsidiary Alamosa Holdings for $4.3 billion, but also assume $900 million of net debt.

Under the agreement, Sprint Nextel will acquire all of Alamosa Holdings’ (Lubbock, Texas) outstanding common shares for $18.75 per share. The acquisition is expected to be completed the first quarter of 2006, pending shareholder approval.

"This acquisition closes a long partnership with the management and shareholders of Alamosa," said Gary Forsee, president and CEO, Sprint Nextel, in a statement. "As the largest PCS affiliate, we appreciate their efforts over the years to grow Sprint's business and we look forward to continuing a strong relationship with their customers. This transaction will significantly expand our direct customer base and territory, and will provide additional value for our shareholders."

The relationship between Alamosa and Sprint has recently become strained.

On Aug. 8, Alamosa filed a complaint against Sprint regarding certain exclusivity covenants Sprint had with Alamosa's subsidiary AirGate. As part of the agreement, Sprint Nextel and AirGate will seek an immediate stay of litigation pending in the Delaware Court of Chancery with a final resolution to become effective upon the acquisition’s closing.