Virgin mobile buys helio

Virgin Mobile USA has agreed to acquire Helio (a joint venture between SK Telecom and EarthLink).with the acquisition costing Virgin Mobile $39 million, paid in limited partnership units equivalent to 13 million of its shares, currently valued at $2.99. In addition, the company will take on $50 million of investments from British parent Virgin Group and SK Telecom at a price of $8.50 per share. It is thought the deal will assist Virgin by:

Acquiring higher-paying subscribers (170,000 customers with an ARPU of $80);
Expanding its range of products and services;
improve its handset portfolio;
improve its debt levels;
place it in a stronger position for negotiating better with network operator Sprint Nextel.

For further information see separate report: Global - Mobile - MVNOs.