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Information technology services industry

T-Mobile and DISH Network Corporation Finalize Agreement for Acquisition of Sprint's Prepaid Wireless Business

Strategic Insights

— 1 min read

T-Mobile, Sprint, and DISH Network Corporation have agreed to amend the Asset Purchase Agreement, signed on July 26, 2019, to proceed with the acquisition of Sprint's prepaid wireless business. The DOJ has consented to the closing of the Prepaid Business Sale on July 1, 2020, subject to the terms and conditions of the Agreement and the Final Judgment entered by a federal district court on April 1, 2020. This development brings the parties closer to completing the acquisition, with all conditions to closing satisfied except for those that can only be fulfilled at the closing.

Key Takeaways:

  • T-Mobile, Sprint, and DISH Network Corporation have executed a First Amendment to the Asset Purchase Agreement, amending the original agreement signed on July 26, 2019.
  • The agreement allows DISH to acquire Sprint's prepaid wireless business, including customer accounts, inventory, contracts, intellectual property, and specified assets.
  • The DOJ has determined that T-Mobile has complied with the requirement to provide DISH the ability to cross-provision any new or existing customer of the prepaid business onto the T-Mobile network.
  • The parties have agreed to meet the conditions for closing, with the Closing set to occur on July 1, 2020.
  • The Asset Purchase Agreement remains unchanged, with the only amendment being the addition of a Termination Date of July 1, 2020.
  • The amendment provides that either party may terminate the agreement if the Closing has not occurred before the end of the day on July 1, 2020.

Statistics:

  • July 26, 2019: Date of the original Asset Purchase Agreement between T-Mobile, Sprint, and DISH Network Corporation.
  • April 1, 2020: Date of the Final Judgment entered by a federal district court in Washington, D.C.
  • June 17, 2020: Date of the First Amendment to the Asset Purchase Agreement.
  • July 1, 2020: Scheduled date for the Closing of the Prepaid Business Sale.

Sources:

  • EDGAR Online via COMTEX
  • T-Mobile US, Inc. (Form 8-K)
  • Cybernet Data Systems, Inc.
  • Securities Exchange Act of 1934
  • First Amendment to the Asset Purchase Agreement (Exhibit 2.1)

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