Cricket Communications, Inc.announced that it has signed an agreement with Hargray Communications Group, Inc. to acquire Hargray’s wireless telecommunications business and bring Cricket service to the Savannah, Ga. and Hilton Head, S.C. areas.
Under the agreement, Cricket will acquire Hargray Wireless LLC, including its 15 MHz wireless spectrum license, its wireless network and the majority of its wireless customer base. Hargray’s wireline and wireless bundled customers will remain with Hargray and be able to receive Cricket service under a wholesale arrangement to be entered into between the parties upon the closing of the transaction.
nder terms of the transaction, Cricket will pay Hargray approximately $30 million.
Hargray’s wireless license spans approximately 817,000 licensed POPs with a network that covers 695,000 POPs. Upon closing of the transaction, all wireless subscribers in the BTA will be transitioned onto Cricket’s unlimited wireless plans or a Hargray bundle that includes Cricket service.
“By purchasing Hargray’s wireless business we are able to not only increase our speed to market but also avoid much of the cost associated with building a market from the ground up,” said Doug Hutcheson, president and CEO of Cricket. “Hargray’s footprint in the Savannah, Hilton Head and surrounding areas complement our newly launched Charleston, S.C., market as well as our existing Carolinas cluster. We believe that this collaboration is another positive step in Cricket’s growth, as it will provide our current customer base with even more value, especially as they travel on the Eastern Seaboard.”
“This agreement will provide Hargray’s customers with access to the state-of-the-art wireless services of a growing coast-to-coast carrier, while continuing to have access to technologically advanced wireline voice, video and broadband services from Hargray, a locally-based company that has served customers in the Low Country of South Carolina for over five decades,” said Michael Gottdenker, chairman and CEO of Hargray. “We are excited to enter into this relationship with Cricket.”
Under the wholesale agreement to be entered into between the parties upon closing of the transaction, Cricket service will be available as part of Hargray’s value-added bundled services, which include wireline phone service, high-speed Internet access, cable television and wireless communications. That bundled service offering is currently available to customers in the Hilton Head, S.C. and surrounding areas, including Beaufort and Jasper counties S.C. and Pooler, Ga.
Completion of the transaction is subject to customary closing conditions, including approval by the Federal Communications Commission (FCC). Cricket expects the purchase to be completed in the first half of 2008. RBC Daniels acted as an advisor to Hargray in this transaction.
About Cricket®
Cricket is a simple, affordable wireless service offering consumers and local businesses a flat-rate unlimited service over the latest technology, high-quality, all-digital CDMA2000 1X and 1xEV-DO wireless network. Designed for customers whose basic and advanced wireless needs have not been met by traditional communications companies, Cricket is the pioneer of unlimited services with no long-term commitments or credit checks required. Cricket offers customers access to a variety of the latest devices and feature-rich mobile applications such as unlimited text, instant and picture messaging, Mobile Web, popular games, ringtones and wallpapers. For more information on Cricket, visit www.mycricket.com. Cricket services are offered by Leap Wireless International, Inc., headquartered in San Diego, Calif. (NASDAQ symbol: LEAP). For more information on Leap, visit www.leapwireless.com.
About Hargray
Headquartered in Hilton Head Island, S.C., Hargray is a quadruple-play provider of state-of-the-art telecommunications and related services primarily in Beaufort and Jasper counties in South Carolina. The company’s service offerings include wired and wireless telephone, high-speed Internet and cable and IP television. In addition, the company operates a telephone directory publishing business. For more information, please visit www.hargray.com.