Sprint Nextel to acquire Enterprise Communications
Sprint Nextel has announced that they are going to acquire Enterprise Communications of Georgia for about $98 million. The decision would help them avoid another affiliate lawsuit behind it, which was thrown at the company after Sprint merged with Nextel to become a single entity. Enterprise Communications is based in Columbus, and is an exclusive affiliate partner for Sprint.
They have their businesses servicing customers in Georgia and surrounding states where Nextel has their own setup. The combined entity resulted in a unit, which gave this group competition and had filed a lawsuit against the parent company. The lawsuit claimed that the Sprint-Nextel merger would violate its exclusive agreement to be an affiliate for Sprint.
Enterprise Communications has now said that they expect all the issues resolved after the deal is finalized sometime next year after getting approvals from federal and regulatory authorities. Tom Beal, chief operating officer for Enterprise said in a statement: “There have been lots of discussions between affiliates and Sprint. Our owners felt this was the best approach for the employees and best for the company.”
The acquisition would add around 52,000 PCS wireless users to Sprint Nextelâ€™s user base in the region.