The transaction will be a combination of 39% cash and 61% stock to acquire Ka’ena, however the final price T-Mobile will pay, will be based upon Ka’ena’s performance before and after the closing.
“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.”
With the addition of Mint Mobile, a direct-to-consumer (D2C) prepaid wireless brand in the US and Ultra Mobile, a mobile virtual network operator, and wholesaler Plum, the brands’ will continue to have use of T-Mobile 5G network.
Specifically, T-Mobile is to acquire the brands' sales, marketing, digital, and service operations, and plans to use its supplier relationships and distribution scale to help the brands to grow and offer competitive pricing and greater device inventory in the US.
“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.”
At the same time, T-Mobile will also be able to use Mint’s digital D2C marketing expertise as part of its broader portfolio to reach new customer segments and geographies. the Mint and Ultra brands are also complementary to the company’s exiting prepaid service offerings Metro by T-Mobile, T-Mobile branded prepaid and Connect by T-Mobile.
Once the deal is completed, Mint's founders David Glickman and Rizwan Kassim will remain onboard at T-Mobile to manage the brands, which will continue to operate as a separate business unit. Mint owner, actor Ryan Reynolds, will continue on in his creative role at the company.
“Mint Mobile is the best deal in wireless and today’s news only enhances our ability to deliver for our customers," said Ryan Reynolds.
"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.”
Subject to meeting certain closing conditions the deal is expected to close sometime later this year.
