Telecoms giant, T-Mobile set to acquire Mint Mobile in a deal worth $1.3 billion.
The budget-friendly wireless provider, Mint Mobile is partially owned by Ryan Reynolds.
The move which was made known on Wednesday shows that T-Mobile is trying to increase its prepaid offerings.
T-Mobile stated in a blog post that it reached a deal to acquire Ka’ena Corporation, the parent company to Mint Mobile and Ultra Mobile, and also wireless wholesaler Plum for $1.35 billion with 39% cash and 61% stock.
However, the final purchase price will be determined by Mint’s performance before and after the closing.
The deal is expected to be closed 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 CEO Mike Sievert, said in a statement.
“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.” he added.
Ryan Reynolds retain his creative role on behalf of Mint and continue appearing in ads after the deal is closed.
Mint founders, David Glickman and Rizwan Kassim, will remain at T-Mobile to manage the brands.
T-Mobile will also acquire Mint sales, marketing, digital, and service operations.
T-Mobile plans to use its supplier relationships and distribution scale to scale the brand and offer competitive pricing.