DALLAS (dpa-AFX) - AT&T Inc. (T) and prepaid wireless provider Leap Wireless International Inc. (LEAP) have entered into an agreement for AT&T to acquire Leap for $15 per share in cash.
AT&T said that under the terms of the agreement, it will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and about 5 million subscribers.
Leap shareholders will also receive a contingent right entitling them to the net proceeds received on the sale of Leap's 700 Mhz 'A Block' spectrum in Chicago, which Leap purchased for $204 million in August 2012.
AT&T stated that it will retain the Cricket brand name, provide Cricket customers with access to AT&T's award-winning 4G LTE mobile network, utilize Cricket's distribution channels, and expand Cricket's presence to additional U.S. cities.
Immediately after approval of the transaction, AT&T said it intends to put Leap's unutilized spectrum - which covers 41 million people - to use in furthering its 4G LTE deployment and providing additional capacity and enhanced network performance for customers' growing mobile Internet usage.
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