UbiquiTel Inc, a Sprint PCS Network Partner, today announced that it has entered into an agreement to acquire VIA Wireless, a privately held Sprint PCS Network Partner.
Under the terms of the transaction, UbiquiTel will issue 16.4 million shares of common stock and assume approximately $25.0 million of net debt as of December 31, 2000. VIA members will hold approximately 19.5% of UbiquiTel’s stock after the transaction.
VIA Wireless is said to be the exclusive provider of Sprint PCS digital wireless personal communication services to the Central Valley of California.
The VIA network currently covers approximately 2.5 million residents, including key travel corridors between Los Angeles and San Francisco.
The transaction is subject to regulatory approvals, including the US Federal Communications Commission and approval by UbiquiTel’s stockholders of the issuance of the shares.
These approvals should be obtained within several months, and the transaction is expected to close by July 31, 2001. In the interim, UbiquiTel will advance up to US$25 million to fund VIA’s operations and will manage VIA’s operations.