Sprint Nextel acquires Nextel Partners for $6.5 billion
The problems for the merged entity Sprint Nextel does not seem to halt anytime soon. The company had to buy yet another affiliate of previously independent unit Nextel, Nextel Partners. And this time the price is pretty steep at USD 6.5 Billion. This deal would end the bitter dispute between the two parties.
Spring Nextel had been trying hard to acquire Nextel Partners since quite sometime now but the purchase price was the topic of dispute. Sprint Nextel even went to the extent of filing a lawsuit against them. Nextel Partners serves midsize and small markets using the Nextel brand name.
They had complained that the price being asked by the affiliate partner was too high considering the fact that the companyâ€™s stock was inflated due to the expectations of a buyout. However, they failed to get a decent deal in this case, as they would be paying around $28.50 per share for Nextel Partners, which closed at $26.32 a share on Monday.
This is not the first Nextelâ€™s affiliates that they had to purchase to keep the problems away from the merger. Spring Nextel have already acquired Alamosa Holdings, U.S. Unwired, Gulf Coast Wireless and IWO Holdings and this latest deal adds to this long list.