Clearwire shareholders have approved Sprint Nextel’s bid to acquire the remaining half of the wireless Internet operator.
At $5 a share, Clearwire is valued at about $14 billion, according to Sprint.
Sprint Nextel’s bid for full control of the wireless Internet operator will benefit Sprint as it can grab valuable airwaves to make its services more competitive.
Investors representing 82 percent of eligible shares approved the $5-a-share proposal.
Sprint, the third-largest wireless carrier in the U.S., won support from shareholders after raising its offer two weeks ago, trumping a $4.40-a-share bid from Dish Network.
By acquiring Clearwire’s spectrum, Sprint can offer faster download speeds in more locations.
The acquisition of Clearwire is in line with the strategy of SoftBank, the Japanese carrier that’s buying a majority of Sprint shares in a separate $21.6 billion deal.
Clearwire and Softbank plan to close the merger tomorrow (July 10), according to today’s statement.
Sprint shareholders approved SoftBank’s takeover proposal on June 25, and the deal gained Federal Communications Commission approval last week, passing its final hurdle.
The integration will be the next step.
Erik Prusch, president and CEO of Clearwire, said: “The Clearwire team is looking forward to working closely with our counterparts at Sprint to realize the potential of our assets inherent in this combination as we integrate our two companies.”
Sprint Nextel’s Capex (Capital expenditure) in Q1 2013 has increased significantly to $1.38 billion from $783 million in Q1 2013. Sprint Nextel’s Capex in Q4 2012 was $1.47 billion.