AT&T to acquire Leap Wireless for $1.2 billion

With competitor like T-Mobile going full pre-paid, AT&T seems to be seeking a foothold in the competitive prepaid wireless market. AT&T has agreed to acquire Leap Wireless International Inc. for a deal valued at approximately $1.2 billion.

AT&T LogoAT&T is currently the nation’s second largest wireless carrier, and it has been rumored that they have been in talks with Leap Wireless about acquire its subsidiary Cricket, a prepaid carrier that offers low cost, no-contract prepaid wireless plans to its approximately 5 million US subscribers.

According to the terms of the contract, AT&T will pay $15 a share in cash and will acquire all of Leap’s stock and wireless properties including licenses, network assets and retail stores. AT&T stated that it would retain Leap’s Cricket brand name, provide Cricket customers with access to its 4G LTE network and expand Cricket’s presence to more U.S. cities.

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