Company Website:
http://www.sprint.com
OVERLAND PARK, Kan. & SAN JUAN, Puerto Rico -- (Business Wire)
Sprint (NYSE:S) and PR Wireless, doing business as Open Mobile, today
announced an agreement to combine their businesses in Puerto Rico,
together with Sprint’s business in the U.S. Virgin Islands, into a new
joint venture. The joint venture between two of the key players in the
Puerto Rico wireless market will create a stronger competitor offering
postpaid, prepaid, Lifeline and business services with increased scale,
expanded distribution, improved network capacity, faster speed, and a
deeper spectrum position. Sprint and Open Mobile will have a 68% and a
32% economic interest, and a 55% and 45% voting interest in the joint
venture, respectively. Evercore served as financial advisor to Open
Mobile on the transaction.
“The combination of Sprint and Open Mobile will put us in a better
position for sustainable growth and long-term success in the competitive
Puerto Rico market,” said Claudio Hidalgo, Sprint’s Regional President
for Florida, Puerto Rico and the U.S. Virgin Islands. “We will be able
to more efficiently and effectively run the joint venture by integrating
our strong employee teams, retail operations, and network and spectrum
assets to create an improved mobile experience for our customers.”
“Looking at each company and our strengths in various segments of the
market, we saw an incredible opportunity to join forces in a way that
will benefit our customers, our employees and our business,” said Juan
Saca, CEO of Open Mobile. “Our employees will be able to offer customers
more competitive plans and better wireless coverage, with Open Mobile
customers having a wider variety of devices to choose from and plans
that include nationwide coverage and options for international roaming.”
The joint venture takes advantage of the strengths of both Sprint and
Open Mobile. A Board of Directors will be established with Open Mobile
and Sprint each designating representatives. A senior management team,
to be named by the Board prior to closing, will manage day-to-day
operations of the joint venture out of Puerto Rico. The transaction
close is subject to review and approval by the Federal Communications
Commission, along with other regulatory authorities, which is expected
to take several months.
Both companies will continue to operate separately in the market under
their current brands until the transaction closes. No action is required
by existing Open Mobile, Sprint, Boost Mobile, or Virgin Mobile
customers at this time, and they can remain on their existing devices
and service plans. All customers in Puerto Rico and the US Virgin
Islands can expect a smooth transition, and additional information will
be provided to all customers when the transaction closes.
About Sprint:
Sprint (NYSE: S) is a communications services company that creates more
and better ways to connect its customers to the things they care about
most. Sprint served 59.5 million connections as of Dec. 31, 2016 and is
widely recognized for developing, engineering and deploying innovative
technologies, including the first wireless 4G service from a national
carrier in the United States; leading no-contract brands including
Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant
national and international push-to-talk capabilities; and a global Tier
1 Internet backbone. Sprint has been named to the Dow Jones
Sustainability Index (DJSI) North America for the past five years. You
can learn more and visit Sprint at www.sprint.com
or www.facebook.com/sprint
and www.twitter.com/sprint.
About Open Mobile
Open Mobile is a leading wireless communications company on the
island. It was established on June 12, 2007. It has a solid, modern and
updated network that can provide a flexible and high quality service to
its customers. Currently, Open Mobile generates more than 300 direct
jobs and operates more than 309 stores and distribution points. For more
information on the products and services offered by Open Mobile you can
visit www.openmobilepr.com
or www.facebook.com/openmobilepr/
and www.twitter.com/openmobilepr.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223005406/en/
Contacts:
Media:
Sprint
David Tovar, 913-315-1451
david.tovar@sprint.com
or
Open
Mobile
Josué González, 787-810-5757 ext. 4007
josue.gonzalez@openmobilepr.com
or
Investors:
Sprint
Jud
Henry, 800-259-3755
jud.d.henry@sprint.com
or
Open
Mobile
Olga Bonnin, 787-810-5757 ext. 1002
olga.bonnin@openmobilepr.com
Source: Sprint
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