Softbank to buy 57% in US wireless device distributor Brightstar for $1.26 bn
19 Oct 2013
Softbank Corp, Japan's third-largest carrier, yesterday said that it will buy a 57-per cent majority stake in US wireless device distributor Brightstar Corp, for $1.26 billion.
Under the deal that values Brightstar at $2.2 billion, Softbank will hold a 57-per cent stake, while Brightstar's founder and CEO Marcelo Claure will hold the remaining 43 per cent.
Softbank has the option to raise its stake to 70 per cent over the next five years, "or upon certain unspecified events".
Earlier this week, the Tokyo-based company had confirmed a media report that it is in talks to acquire a majority stake in privately-held Brightstar. (See: Softbank in talks to buy majority stake in Brightstar Corp)
Softbank, which earlier this year acquired an 80-per cent controlling stake in US wireless carrier Sprint Nextel Corp for $21.6 billion, said that the Brightstar deal would allow it to buy mobile devices in bigger volumes at higher discounts and increase competitiveness both in Japan and the US
Post transaction, Masayoshi Son, chairman of Softbank will become chairman of Brightstar, and Claure will serve as vice-chairman and CEO.
Florida-based Brightstar, ranked 58 on the Forbes List of America's Largest Private Companies, is the world's largest specialised wireless distributor and a leading provider of diversified services for manufacturers, operators and retailers in the telecom industry.
It buys mobile phones, tablets and accessories from manufacturers and sells it to wireless operators and retailers. It clients include Apple, Blackberry, Nokia, HTC, LG, Sony, Samsung, Hewlett-Packard and others.
It other services include Handset Protection & Insurance, Buyback and Trade-in Solutions, Multi-Channel Retail Solutions, and Financial Services.
Brightstar provides services in over 125 countries and has a local presence in over 50 countries.
Softbank, run by billionaire founder Masayoshi Son, has recently gone on a shopping spree in North America and Europe in order to boost revenues amid declining sales at its home country.
Apart from taking control of Sprint Nextel, Softbank paid $2.3 billion to acquire its local smaller rival eAccess and this week teamed up with GungHo Online Entertainment Inc to acquire a 51-per cent stake in Finnish smartphone game maker Supercell Oy for $1.53 billion.
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