Much on the expected lines, Sprint Nextel Corp. has now formally taken over Gulf Coast Wireless Limited Partnership for a hefty figure of around $287.5 million. This figure was chalked out after taking into the consideration the debt portion of the acquired firm. The acquisition is likely to further strengthen the position of the recently merged and forged Sprint Nextel Corporation.
With this acquisition, nearly 1,000,000 customers using Sprint PCS services in Southern Louisiana and Mississippi will come under the direct fold of Sprint Nextel Corporation. This service was previously routed through Golf Coast Wireless. The closing of the deal is also significant in the sense that it will bring to an end the legal troubles for Sprint Nextel which was recently dragged into the U.S. District Court in Middle District of Louisiana by Golf Coast. As part of the acquisition agreement, both Sprint Nextel and Gulf Coast Wireless will now seek an immediate stay of litigation with a final resolution to become effective upon the closing of the acquisition. The acquisition is subject to customary regulatory approvals and is expected to be finally approved in the fourth quarter of 2005.