|Sprint Nextel acquires Velocita Wireless|
Posted: 16-Dec-2005 [Source: Sprint Nextel]
[Sprint Nextel's buys Velocita and plans to use a portion of its 900 MHz spectrum to supplement its iDEN PTT national network. ]
Reston, VA -- Sprint Nextel Corp. and Velocita Wireless announced today that Sprint Nextel will acquire Velocita through a stock purchase agreement and plans to begin use of some of the company's 900 MHz spectrum. The transaction is subject to customary regulatory approvals, and is expected to be completed during the first half of 2006. Velocita, a leading provider of wireless data connectivity solutions and services, will continue to operate independently until that time. Terms were not disclosed.
Velocita Wireless, headquartered in Woodbridge, N.J., serves about 400,000 business and governmental customers, with products that include wireless email, messaging, machine-to-machine, automated vehicle location, point-of-sale and field force automation applications.
After completion of the transaction, Sprint Nextel will utilize a portion of Velocita's spectrum assets to supplement Sprint Nextel's coverage for customers on its iDEN national network. That spectrum use is not expected to impact Velocita's network coverage or availability. Sprint Nextel will continue to honor existing Velocita customer contracts after the close of the transaction, and will work with customers as appropriate to provide wireless network services that most closely meet their business needs.
"We believe that the addition of Velocita will provide Sprint Nextel with additional spectrum capabilities over 900 MHz that will enhance the iDEN network nationwide and will help ensure Velocita's customers' needs are fully met," said Len Lauer, chief operating officer for Sprint Nextel.
Charles Nelson, CEO and president of Velocita Wireless, added, "Velocita is excited by the opportunity to become part of the Sprint Nextel family. We believe that the transaction will enable both parties to satisfy the increasingly complex needs of wireless customers."
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