T-Mobile US (NASDAQ: TMUS) reported entry into a definitive agreement to acquire Ka’ena Corporation and its subsidiaries and brands: Mint Mobile; Ultra Mobile; and wholesaler Plum. The brands’ exclusive use of Un-carrier’s largest 5G network will continue. T-Mobile is acquiring the brands’ sales, marketing, digital and service operations while planning to use its supplier relationship and distribution scale to help the brands grow and offer competitive pricing. “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,” said Mike Sievert, CEO of T-Mobile. “Over the long-term, we’ll also benefit from applying the marketing formula Mint has become famous for across more parts of T-Mobile. We think customers are really going to win with a more competitive and expansive Mint and Ultra.”
“Our brands have thrived on the T-Mobile network, and we are thrilled that this agreement will take them even further, bringing the many benefits of 5G to even more Americans,” said David Glickman, founder and CEO of Mint, Ultra and Plum. “This transaction validates our meteoric success and will unite two proven industry innovators committed to doing things differently in the wireless industry.”
“Mint Mobile is the best deal in wireless and today’s news only enhances our ability to deliver for our customers. We are so happy T-Mobile beat out an aggressive last-minute bid from my mom Tammy Reynolds as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly-above-average mahjong skills. I am so proud of the entire Mint team and so excited for what’s to come,” said Ryan Reynolds.
Mint founders David Glickman and Rizwan Kassim will remain onboard at T-Mobile to manage the brands which will operate as a separate business unit. T-Mobile will pay up to USD 1.35 Billion in a combination of 39% cash and 61% stock to acquire Ka’ena. The price paid by T-Mobile will be determined on Ka’ena’s performance during certain periods before and after the closing.