AT&T to Acquire Leap Wireless, Cricket Brand

AT&T on Friday announced that it would acquire regional carrier Leap Wireless for $15 per share in cash.

The deal covers Leap's stock and wireless properties, including licenses, network assets, retail stores, and approximately 5 million subscribers.

Leap operates the Cricket brand, which AT&T will retain. Cricket customers will gain access to AT&T's 4G LTE network, the carrier said.

Leap currently has a presence in 35 U.S. states and operates a 3G and 4G network, which first rolled out in Tucson, Ariz. in Dec. 2011, and expanded to Las Vegas last year.

"The result will be increased competition, better device choices, improved customer care and a significantly enhanced mobile Internet experience for consumers seeking low-cost prepaid wireless plans," AT&T said in a statement.

As part of the deal, AT&T will also nab spectrum in the PCS and AWS bands, which it said is "largely complementary" to its existing spectrum licenses. This spectrum will be used to continue expansion of AT&T's 4G LTE network, which is currently available in 325 U.S. markets and recently topped PCMag's annual Fastest Mobile Networks test.

The deal must be approved by the Federal Communications Commission and the Department of Justice. This deal will likely receive less scrutiny than AT&T's failed bid to acquire T-Mobile, which resulted in large-scale outrage, congressional hearings, and was ultimately rejected by the FCC and DOJ for being anti-competitive. Ultimately, T-Mobile went on to purchase MetroPCS.

AT&T expects the Leap Wireless transaction to close in six to nine months.

In May, AT&T launched a new wireless service, dubbed Aio Wireless, that provides customers with no-contract talk, text, and data.