said it will acquire wireless affiliate
in a $1 billion deal.
Sprint, of Reston, Va., also plans to assume about $300 million of UbiquiTel debt.
The buyout values each UbiquiTel share at $10.35, only a slight premium to both its last close and 52-week high. UbiquiTel finished trading Wednesday at $10.19. The stock has traded between $6.76 and $10.32 in the last year.
Lately, shares of UbiquiTel were up 10 cents to $10.29. Sprint slipped 21 cents to $25.44.
UbiquiTel, based in Conshohocken, Pa., provides Sprint PCS services in midsize markets in nine states, including California, Indiana and Wyoming. As of March 31, the company served roughly 452,000 direct wireless subscribers and 151,000 wholesale subscribers.
The company had been involved in litigation with Sprint stemming from the merger that formed Sprint Nextel. UbiquiTel had claimed that the deal would allow Nextel, a wireless-services provider, to encroach on its exclusivity rights in its territories. With Sprint now buying UbiquiTel, the sides plan to end the spat.
UbiquiTel had revenue of $422.7 million in 2005.