Sprint Nextel Corp said on Monday it would buy wireless affiliate Alamosa Holdings Inc for about $3.4 billion, resolving legal issues that arose from Sprint's purchase of Nextel Communications, which operates in some of the same markets as the affiliate.
Sprint Nextel, the No 3 US mobile service, said Alamosa shareholders would receive $18.75 per share in cash under the agreement. The deal is worth $4.3 billion, including $900 million in net debt.
The deal, which includes Alamosa's 1.48 million customers, is expected to close in the first quarter, subject to approval by Alamosa shareholders and regulators, Sprint Nextel said.
Sprint Nextel is also going through a valuation process for another affiliate Nextel Partners Inc, which it is being forced to buy. It has several other affiliates it could potentially buy or create new agreements with in order to resolve breach of contract issues.
Alamosa shares were up $2.11, or 13 percent, at $18.37 on Nasdaq after the news.