Sprint Buys Wireless Affiliate Ubiquitel

Sprint Nextel said Thursday that it had agreed to purchase Ubiquitel, an affiliate of the wireless carrier that offers cellular services in small and mid-size markets in California, Idaho, Indiana, Kentucky, Nevada, Tennessee, Utah, Washington and Wyoming. Sprint agreed to purchase the Conshohocken, Pa., based company for $1 billion, and assumed $300 million in debt. The deal is expected to close in the second quarter of this year.

Ubiquitel, like many of Sprint's affiliates, filed suit against the wireless carrier following its merger with Nextel to force it to purchase the company outright. As a result of the buyout, this litigation would be stayed in Delaware court pending the closing of the merger. As of the end of the first quarter of this year, Ubiquitel served about 452,000 wireless subscribers and 151,000 wholesale customers.