T-Mobile US Inc. is buying Mint Mobile, the budget wireless provider partly owned by Hollywood actor Ryan Reynolds, for as much as $1.35 billion in an effort to bolster its prepaid phone business and reach more lower-income customers.
In a blog post, T-Mobile said it reached a deal to acquire Ka’ena Corporation, the parent company to prepaid wireless brands Mint Mobile and Ultra Mobile, as well as wireless wholesaler Plum for a maximum of $1.35 billion in a combination of 39% cash and 61% stock.
The final purchase price will be based on Mint’s performance during certain periods 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 T-Mobile CEO Mike Sievert in a statement.
Mint Mobile founders Rizwan Kassim and David Glickman will stay on board at T-Mobile and continue to manage their company while Ryan will remain as the spokesperson. The deal is set to close later this year.