DR_Principe
09-01-2005, 10:43 AM
More Than 95,000 PCS Wireless Users to Become Direct Subscribers of Sprint Nextel
Extends Company's Direct Territory to an Additional 1.5 Million People
RESTON, Va. and BATON ROUGE, La. — 08/30/2005
Sprint Nextel Corporation (NYSE: S) and Gulf Coast Wireless Limited Partnership announced an agreement for Sprint Nextel to acquire Gulf Coast Wireless for approximately $287.5 million, including the assumption of debt. This transaction value represents 9.2x Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the 12 months ending June 30, 2005 and 8.1x 2006E EBITDA.
As part of the agreement, Sprint Nextel and Gulf Coast Wireless will seek an immediate stay of litigation pending in U.S. District Court in Middle District of Louisiana with a final resolution to become effective upon the closing of the acquisition. The acquisition is subject to customary regulatory approvals and is expected to be completed in the fourth quarter of 2005.
About Gulf Coast Wireless
Gulf Coast Wireless, based in Baton Rouge, La., provides Sprint PCS services in southern Louisiana and Mississippi serving more than 95,000 direct wireless subscribers. It employs about 130 people and had 2004 revenues of $87.9 million.
Extends Company's Direct Territory to an Additional 1.5 Million People
RESTON, Va. and BATON ROUGE, La. — 08/30/2005
Sprint Nextel Corporation (NYSE: S) and Gulf Coast Wireless Limited Partnership announced an agreement for Sprint Nextel to acquire Gulf Coast Wireless for approximately $287.5 million, including the assumption of debt. This transaction value represents 9.2x Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the 12 months ending June 30, 2005 and 8.1x 2006E EBITDA.
As part of the agreement, Sprint Nextel and Gulf Coast Wireless will seek an immediate stay of litigation pending in U.S. District Court in Middle District of Louisiana with a final resolution to become effective upon the closing of the acquisition. The acquisition is subject to customary regulatory approvals and is expected to be completed in the fourth quarter of 2005.
About Gulf Coast Wireless
Gulf Coast Wireless, based in Baton Rouge, La., provides Sprint PCS services in southern Louisiana and Mississippi serving more than 95,000 direct wireless subscribers. It employs about 130 people and had 2004 revenues of $87.9 million.