Blog Exposure – Sprint Merges With T-Mobile US

LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free research report on Sprint Corp. (NYSE: S). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=S as the Company’s latest news hit the wire. On April 29, 2018, the Company and T-Mobile US (NASDAQ: TMUS) collectively declared that they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or 9.75 Sprint shares for each T-Mobile US share. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sprint and T-Mobile US most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=S

www.active-investors.com/registration-sg/?symbol=TMUS

Combined Company to Have Strong Balance Sheet and Investment-Grade Debt

This transaction represents a total implied enterprise value of approximately $59 billion for Sprint, and approximately $146 billion for the combined Company, based on the closing share prices on April 27, 2018. The transaction is expected to have pro-forma service revenues of $53 billion – $57 billion; pro-forma adjusted EBITDA of $22 billion – $23 billion; and pro-forma adjusted EBITDA margin of 40% – 42%, with a longer-term target of 54% – 57% in 2018. Moreover, the combined Company is expected to have a pro-forma net debt of $63 billion – $65 billion in 2018, with a streamlined single-silo corporate debt structure. It would also have a fully-funded business plan with significant liquidity at closing.

Shifting the Un-carrier Strategy into Overdrive and Better Offerings for Customers

The combined Company would have greater economies of scale and the ability to offer US consumers lower prices, better quality, unmatched value, and greater competition. The combination of T-Mobile with Sprint is a winning combination, which would make wireless and related industries such as cable and broadband, more affordable for everyone. Besides, the combination would also accelerate T-Mobile’s successful Un-carrier strategy, which focusses on listening to customers and solving their pain points. Alongside, it would also leverage Sprint’s spectrum assets and strong DNA.

The combination would offer more choice and competition for customers in the three key underserved areas – rural communities, broadband, and business and government wireless services.

Synergies of Over $6 Billion

The combined Company is expected to create significant value for T-Mobile’s and Sprint’s shareholders through run rate cost synergies of more than $6 billion, with a net present value (NPV) of over $43 billion, net of expected costs to achieve such cost synergies. In fact, it would have some of the most iconic brands in wireless – T-Mobile, Sprint, MetroPCS, Boost Mobile, and Virgin Mobile.

Deal Presents an Opportunity in 5G

T-Mobile’s Un-carrier strategy is expected to disrupt the marketplace and lay the foundation for US Companies to lead in the 5G era, as they did in 4G. Sprint’s expansive 2.5 GHz spectrum, and T-Mobile’s nationwide 600 MHz spectrum, along with other combined assets, would enable the new T-Mobile to create the highest capacity mobile network in the US’ history. Only the new T-Mobile will have the network capacity to create and support a nationwide 5G network. In fact, the new Company would be able to create a broad and deep 5G network faster than either Company would separately.

It must be noted that T-Mobile deployed nationwide LTE twice as fast as Verizon and three times faster than AT&T. The combined Company’s network is expected to deliver 15x faster speeds on average nationwide by 2024, compared to T-Mobile’s existing network. Therefore, the combined Company would be better positioned to launch 5G with deep spectrum assets and network capacity.

Greater Job Creation in the US

The combined Company is expected to offer employment to more people in the US than both Companies would separately. In fact, over 200,000 people will work for the combined Company in the US in the beginning. The new T-Mobile intends to invest up to $40 billion in its new network and business in the first three years, and this huge capital outlay will fuel job growth across sectors.

As per a report from CTIA, 5G would create approximately 3 million new US jobs and $500 billion in economic growth by 2024, and the combined Company will be a catalyst in driving the massive economic stimulus.

Management of the Combined Company

John Legere, the current President and Chief Executive Officer (CEO) of T-Mobile US and the creator of T-Mobile’s successful Un-carrier strategy, will serve as the CEO of the combined Company.
Mike Sievert, the current Chief Operating Officer (COO) of T-Mobile, will serve as President and COO of the combined Company.
The remaining members of the new management team will be chosen from both Companies during the closing period.
Masayoshi Son, the current SoftBank Group Chairman and CEO, and Marcelo Claure, the current CEO of Sprint, will serve on the Board of the new Company.
Deutsche Telekom and SoftBank Group would hold approximately 42% and 27% of diluted economic ownership of the combined Company, respectively, and the remaining 31% would be held by the public.
The Board will consist of 14 Directors. Of which, 9 will be nominated by Deutsche Telekom and 4 by SoftBank Group.

Transaction Closing

The Boards of Directors of both T-Mobile and Sprint have approved the transaction. However, it is still subject to certain customary closing conditions, including regulatory approvals. The transaction is expected to close in the first half of 2019.

After closing, the new Company will be headquartered in Bellevue, Washington, with second headquarters in Overland Park, Kansas. The combined Company would trade under the symbol ‘TMUS’ on the NASDAQ, post closing.

Stock Performance Snapshot

May 01, 2018 – At Tuesday’s closing bell, Sprint’s stock declined 3.39%, ending the trading session at $5.42.

Volume traded for the day: 43.96 million shares, which was above the 3-month average volume of 16.22 million shares.

Stock performance in the last month – up 11.75%; and previous three-month period – up 2.46%

After yesterday’s close, Sprint’s market cap was at $20.09 billion.

The stock is part of the Technology sector, categorized under the Wireless Communications industry. This sector was up 0.8% at the end of the session.

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