Virgin Mobile USA picked up for 483 million

NULLConsolidation hit the wireless world last week, as Sprint Nextel Corp. said it agreed to acquire Warren-based Virgin Mobile USA Inc. for $483 million in equity. The acquisition gives Sprint, in Overland Park, Kan., more than 5 million additional customers in the prepaid and postpaid markets. Sprint had more than 49 million customers as of fourth quarter 2008.

Virgin Mobile shareholders will receive $5.50 per share in Sprint stock under the terms of the deal. Sprint also will retire Virgin’s outstanding debt. The deal is expected to close by early 2010.

No details have been released on staffing for Virgin Mobile’s 420 employees in the wake of the acquisition. Sprint representative Leigh Horner said it was too early to say how the acquisition might affect staffing.

Sprint still has challenges to overcome. Shortly after announcing the acquisition, Sprint reported a net loss of $384 million on $8.14 billion in revenue for the quarter ended June 30. That compares with a net loss of $344 million on revenue of $9.05 billion for the prior-year period. The company also said it lost a total 257,000 wireless customers during the quarter.