Sprint Nextel to buy Virgin Mobile USA

Networx Enterprise contract holder Sprint Nextel Corp. will acquire prepaid wireless phone provider Virgin Mobile USA Inc. for $483 million.

Terms of the $5.50 per share deal include a commitment by Sprint to retire Virgin Mobile’s outstanding debt of about $205 million at the end of September.

Sprint already has a prepaid mobile phone business in Boost Mobile, but the two providers appeal to different customers, with Warren, N.J.-based Virgin Mobile USA leading in the youth market, the company said.

After the transaction closes, Virgin Mobile USA CEO Dan Schulman will head Sprint’s prepaid business. Matt Carter will continue to lead Boost Mobile.

Sprint, of Overland Park, Kan., is ranked No. 27 on Washington Technology's 2009 Top 100 list of the largest federal government prime contractors.