T-Mobile announced on Wednesday that it has made a move to improve its prepaid offerings by acquiring Ka’ena Corporation, the parent company of popular prepaid wireless brands Mint Mobile and Ultra Mobile, as well as wireless wholesaler Plum.
This acquisition, which is valued at a potential total of $1.35 billion, with 39% in cash and 61% in stock, will allow T-Mobile to integrate these brands more fully into its operations, as they already operate on its network. The final sale price will be based on Ka’ena’s performance during specified periods before and after the closing, according to T-Mobile’s press release.
According to T-Mobile’s press release, Ryan Reynolds, who is both a part owner and the face of Mint Mobile, will continue to be involved in a “creative role” for the wireless carrier. Reynolds, who owns approximately 25% of Mint Mobile, has been a prominent figure in the company’s advertising campaigns. David Glickman, the co-founder of Mint Mobile, told that Reynolds will be staying with the company for “multiple years.” Reynolds and T-Mobile CEO Mike Sievert announced the acquisition in a video that was posted online on Wednesday morning.
T-Mobile expects to close the deal later this year and plans to leverage its supplier relationships and distribution scale to help Mint Mobile and Ultra Mobile grow, as well as offer competitive pricing and a wider range of device inventory to consumers, according to the release. The carrier views Mint and Ultra as complementary to its existing prepaid options, which include Metro by T-Mobile, Connect by T-Mobile, and T-Mobile’s own branded prepaid service.
Mike Katz, T-Mobile’s president of marketing, innovation, and experience said in a statement that the addition of Mint and Ultra will provide the carrier with more products and variety to offer customers, catering to their diverse needs.
Neither T-Mobile nor Ka’ena Corporation has disclosed the number of customers that will join T-Mobile as part of this acquisition. Katz explained that because Mint and Ultra are private companies, the numbers will be revealed after the deal closes at the end of the year.
Source: Economic Times