Sprint Nextel to buy Virgin Mobile USA

The Networx contract holder purchases the prepaid wireless provider for $483 million.

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.

About the Author

Sami Lais is a special contributor to Washington Technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
 Top 100 Promo 2016
contracts DB


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More