AT&T plans to purchase Leap Wireless for $15 per share. Leap is the parent company of Cricket Wireless, a small U.S. carrier that sells the iPhone prepaid. In a press release issued today, both carriers confirmed the acquisition plans, explaining that “AT&T will acquire all of Leap’s stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers.” Leap is currently over $2 billion in debt, so the AT&T deal will help rescue what has been a sinking ship.
“AT&T 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,” notes the press release. The acquisition will also help bolster AT&T’s coverage in select areas around the country. More importantly, Cricket customers will have access to AT&T’s more robust 4G LTE network.