AT&T acquires Leap, a prepaid wireless provider known for its Cricket brand, for $1.2 billion dollars.
AT&T is buying Leap for $15 per share. Leap shares, which had closed at $7.98 Friday, surged to $16.65 in after-hours trading.
Including its Cricket service, Leap ( operates prepaid wireless networks with about 5 million subscribers. The company has recently )struggled to compete in a smartphone world, and in particular, had difficulty selling iPhones on prepaid contracts.
For AT&T (Fortune 500), the acquisition will expand its presence in the prepaid market, the fastest growing segment of the mobile industry. ,
"Cricket's employees, operations and distribution will jump start AT&T's expansion into the highly competitive prepaid segment," AT&T said in a statement.
|Homeless college students seek shelter during breaks|
|GM names Mary Barra as new CEO|
|Budget deal hits federal workers|
|Five things you didn't know about Bernie Madoff's epic scam|
|Snowden docs had NYTimes exec fearing for his life|