T-Mobile US Inc (TMUS.O) announced on Wednesday that it would buy Ka’ena Corp, the owner of Ryan Reynolds-backed cheap cellphone service Mint Mobile, for up to $1.35 billion.
Credit-challenged clients avoid huge monthly costs. Therefore the pay-as-you-go category is expected to grow.
To buy Ka’ena, T-Mobile will use 39% cash and 61% equity. The ultimate price will rely on Ka’ena’s performance before and after the closure.
Plum, Ka’ena’s wholesaler, and Ultra Mobile, its international calling unit, are also included.
