Sprint Nextel said it will acquire iPCS for $831 million in a move that adds almost 1 million wireless customers and shelves litigation between the two companies.
In a statement Tuesday, Sprint said the $831 million price tag ($24 a share) includes the assumption of $405 million in debt. Sprint added that it expects to save $30 million a year from the deal and boost cash flow in 2010.
IPCS is a midwestern wireless carrier that sells Sprint service.
The deal, expected to close in the fourth quarter, will end litigation between the two companies. IPCS had argued that Sprint's 2005 purchase of Nextel violated an exclusivity pact in the territories where it operates. Sprint was planning to divest its iDEN network as a result of the lawsuit.