T-Mobile US Inc. announced today that it has officially completed its merger with Sprint Corporation to create the New T-Mobile.
The parent of the combined company is T-Mobile US, Inc., whose shares of common stock will continue to trade on the NASDAQ Global Select Market under the symbol “TMUS”. The combined company will operate under the name T-Mobile.
The New T-Mobile's commitment to building the world’s best broad 5G network in the U.S. With 14 times more capacity in six years than standalone T-Mobile has today, the New T-Mobile network promises to offer value to consumers, with better service at lower prices. The scale and financial strength of the combined company will drive a planned investment of $40 billion into its network, business and more over the next three years.
The company also announced that with close of the merger, it has completed its long-planned Chief Executive Officer transition from John Legere to Mike Sievert ahead of schedule. Effective immediately, Sievert will assume the role of CEO of T-Mobile. Legere will continue as a member of the Board of Directors for the remainder of his current term, through the Annual Meeting of Shareholders scheduled in June 2020.
T-Mobile promises that its network will have 14 times more capacity in the next six years than T-Mobile alone has today. Within six years, the New T-Mobile also says it will provide 5G to 99% of the U.S. population and average 5G speeds in excess of 100 Mbps to 90% of the U.S. population. The New T-Mobile’s business plan is to built on covering 90% of rural Americans with average 5G speeds of 50 Mbps, up to two times faster than broadband on average.
The New T-Mobile’s wireless in-home broadband service will deliver 100+ Mbps speeds for wireless broadband to 90% of the population and offer in-home service to millions of households in the next six years.
The combined assets of T-Mobile and Sprint are so complementary that the merger is expected to unlock at least $43 billion in synergies for all shareholders. The vast majority of synergies in this deal come from combining networks, such as reducing redundant cell sites and deploying spectrum and other technologies more efficiently.
Under the terms of the transaction, Sprint shareholders will receive a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or the equivalent of approximately 9.75 Sprint shares for each T-Mobile share. As previously announced, per a separate arrangement, SoftBank Group Corp. surrendered approximately 48.8 million T-Mobile shares acquired in the merger to New T-Mobile immediately following the closing of the transaction, making SoftBank’s effective ratio 11.31 Sprint shares per T-Mobile share.
Effective at the beginning of today’s trading session, T-Mobile will trade on the NASDAQ on a combined basis under the ticker symbol “TMUS.” The Sprint shares will no longer trade on the New York Stock Exchange.