Sprint affiliates iPCS, Horizon to merge in $325M deal

? Two wireless affiliates of Sprint Corp., iPCS Inc. and Horizon PCS Inc., announced a roughly $325 million merger Thursday.

The deal will create the second-largest Sprint wireless affiliate measured by coverage area and third largest measured by subscribers.

After the deal closes, iPCS stockholders will own approximately 57.5 percent of the combined company and Horizon PCS stockholders will own approximately 42.5 percent.

Horizon PCS shareholders will receive 0.7725 iPCS shares for each share of Horizon PCS common stock. In total, Horizon shareholders will receive iPCS shares worth $225 million, and iPCS will assume $100 million of Horizon debt.

The combined company will be based in Schaumburg, Ill.

Overland Park-based Sprint, the country’s third-largest wireless carrier, serves millions of customers through agreements with affiliates — separate companies that own their own networks but use the Sprint brand name.

Sprint, which announced a $35 billion deal to merge with Nextel Communications Inc. in December, serves a total of 24.8 million wireless customers, including subscribers served through its affiliates and wholesale deals.

The merger of two Sprint affiliates is the latest in a flurry of wireless deals during the past 13 months, which also include Cingular Wireless, a joint venture of SBC Communications Inc. and BellSouth Corp., buying AT&T Wireless Services Inc. and Alltel Corp. announcing a deal to buy Western Wireless Corp.

Analysts say that more deals involving smaller, regional carriers like Horizon and iPCS are expected to follow.