T-Mobile to acquire Ka’ena, subsidiaries for $1.35B in cash and stock

T-Mobile announced that it has entered into a definitive agreement to acquire Ka’ena Corporation and its subsidiaries and brands: Mint Mobile, a direct-to-consumer prepaid wireless brand in the U.S.; Ultra Mobile, a wireless service offering international calling options to communities across the country; and wholesaler Plum. Following the deal’s close, Mint’s founders David Glickman and Rizwan Kassim will remain onboard at T-Mobile to manage the brands, which will generally operate as a separate business unit. Owner Ryan Reynolds will continue on in his creative role on behalf of Mint. T-Mobile will pay up to a maximum of $1.35B in a combination of 39% cash and 61% stock to acquire Ka’ena. The actual price to be paid by T-Mobile will be based upon Ka’ena’s performance during certain periods before and after the closing. It is also subject to working capital adjustments and other contractual reserves. The transaction is subject to the satisfaction of closing conditions, and is expected to close later this year. T-Mobile does not currently expect the transaction to have any impact on the company’s 2023 guidance or its ongoing stock repurchase program. The transaction is expected to be slightly accretive to both core adjusted EBITDA and free cash flow as T-Mobile captures the full long-term economic value of the Ka’ena business, including by securing financial benefits beyond the end of the current wholesale exclusivity period.