T-Mobile US Inc. plans to acquire prepaid brands including Ryan Reynolds’s Mint Mobile in a deal valued at up to $1.35 billion.
The wireless giant announced Wednesday that it plans to purchase Ka’ena Corp., the parent of prepaid units Mint Mobile and Ultra Mobile and of wholesaler Plum, in a deal consisting of 39% cash and 61% stock.
The final purchase price will be determined by Ka’ena’s performance after the closing, which is expected to take place later this year.
“Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners’ economics to help supercharge it — and Ultra Mobile — into the future,” T-Mobile
TMUS,
Chief Executive Mike Sievert said in a release.
Ryan Reynolds, described by T-Mobile as Mint Mobile’s owner, will stay on in a creative role at Mint, and Mint co-founders David Glickman and Rizwan Kassim will also remain at the company to manage the brands.
Reynolds noted in a video accompanying the announcement that Mint has run on T-Mobile’s network since its inception. T-Mobile’s release says that Mint offers wireless plans for as low as $15 a month.
Shares of T-Mobile are up 0.7% in midday trading Wednesday. The stock has outperformed peers on a one-year basis, rising 14% over that span as AT&T Inc.’s
T,
stock has inched up 4% and as Verizon Communications Inc.’s
VZ,
has sunk 30%. The S&P 500
SPX,
is off 8% over that period.
