The Mexican telecom giant America Movil has entered into a definitive agreement with NII Holdings to acquire Nextel Brazil. The agreed-upon price tag of this deal is $905 million.
The deal will be inclusive of America Movil buying 70% stake in the carrier from NII and also a 30% stake from AI Brazil Holdings BV. The agreed purchase price for this deal will be paid on a cash free/ debt free basis.
Founded in 1987 as Fleetcall, Nextel merged with Sprint Corporation in 2005. Nextel in Brazil is part of NII Holdings independent of the Nextel that merged with Sprint. The business had been struggling and with this acquisition, Nextel has turned the last page of its final chapter.
In a statement, NII’s Chief Financial Officer, Dan Friedman said: “The announcement of this transaction marks the culmination of an extensive multi-year process to pursue a strategic path for Nextel Brazil and provides our best opportunity to monetize our remaining operating assets in light of the competitive landscape in Brazil and long-term need to raise significant capital to fund business operations, debt service and capital expenditures necessary to remain competitive in the future.”