The number 3 wireless carrier in the U.S. grew its prepaid business a little bigger today. Sprint has agreed to purchase Virgin Mobile USA for $483 million which includes the former's 13.1% stake in the latter company. At closing, Sprint is expected to retire Virgin Mobile USA's debt which should be roughly $205 million by the end of this coming September. The deal is based all around the theory that there will be synergy by combining Sprint's prepaid Boost Mobile service with Virgin Mobile USA. In a press release explaining the deal, Sprint says that both Boost and Virgin have two different styles and should complement each other rather than have a competition.
Virgin Mobile USA CEO Dan Schulman will be named the head of Sprint's prepaid business and will report directly to Sprint CEO Dan Hesse. Matt Carter will remain as head of Boost Mobile, but will report to Schulman which means that Virgin will be slightly above Boost on Sprint's new depth chart. The deal is expected to close in the 4th quarter of this year or in early 2010.