T-Mobile said on Wednesday it would buy Ka ena Corp, the owner of Ryan Reynolds-backed budget service provider Mint Mobile, for up to $1.35 billion, as the telecom operator looks to maintain growth in a competitive market.
The pay-as-you-go segment is estimated to see a higher number of subscribers as credit-challenged customers shy away from hefty monthly bills. T-Mobile said it will fund the deal with 39% cash and 61% stock to acquire Ka'ena. The final price to be paid will depend on Ka'ena's performance during certain periods before and after the closing.