It's finally official: Sprint has completed its planned acquisition for 100 percent of wireless high speed network provider Clearwire.
The nation's third largest wireless provider boasted the news in a statement issued on Tuesday morning.
Here are the major takeaway points as of today:
- Clearwire shareholders approved the transaction on July 8, becoming effective on July 9.
- Each share of Class A common stock in Clearwire automatically converted into the right to receive $5.00 per share in cash.
- Clearwire will no longer be listed for trading on the Nasdaq stock exchange.
- Clearwire expects no further trading after the close of business on July 9.
The news follows just one day after Japanese wireless provider SoftBank announced it is scheduled to complete its own $21.6 billion merger with Sprint this week.
All of these chips fell into place rather quickly after the Federal Communications Commission finally approved the Sprint-SoftBank-Clearwire deal last Friday.
To recap, SoftBank made a bid for a 70 percent stake in Sprint for $20.1 billion last October. At the time, it was expected that the deal would close (subject to regulatory approval) by mid-2013.
At the same time, Sprint owned just more than half of Clearwire and wanted to acquire the rest of the company for $2.97 per share.
But there have been a few bumps as this deal works on obtaining federal approval.
For one, Clearwire shareholders asked Sprint to bump up the bid back in January.
That was after Dish filed a note with the FCC to pause review of the Sprint-Softbank deal, assuming that Sprint would be forced to drop its bid for the rest of Clearwire's shares -- thus allowing Dish to wedge its way in instead.
Analysts had previously predicted that the federal agency would issue a ruling as soon as May. However, that was obviously wishful thinking as the last few months have come and gone with nary a peep on the matter.
Dish eventually dropped out of the running, and SoftBank's bid for Sprint was modified in early June to $16.64 billion with a 78 percent ownership in Sprint.
While the direct investment was lowered to $5 billion, the overall value of the deal was still bumped up to $21.6 billion. Sprint shareholders approved the revised bid.