Thursday, August 21, 2008

Virgin Mobile USA Closes Acquisition of Helio

Virgin Mobile USA completed its acquisition of Helio, a joint venture between SK Telecom and EarthLink. The deal involved the exchange of approximately 13 million shares of Virgin Mobile USA Class A common stock, with a value of $38 million based on the average closing price of Virgin Mobile USA's Class A shares, as of two trading days before and two trading days after the date of announcement. In addition, SK Telecom and Virgin Group will each invest $25 million in Virgin Mobile USA for preferred shares.

The deal will give Virgin approximately 170,000 Helio customers with approximately $80 ARPU. Virgin Mobile USA will also gain an established and highly advanced postpaid billing and customer care platform, marking its entrance into this segment of the market. Virgin also noted that the Helio also gives it a set of unique and differentiated data applications, greatly enhancing its offer across its customer base.http://virginmobileusa.mediaroom.com