Sprint has announced an agreement to buy approximate 50% stake in Clearwire it does not currently own for $2.97 per share, equating to a total payment to Clearwire shareholders, other than Sprint, of $2.2 billion. Clearwire’s spectrum, when combined with Sprint’s, will provide Sprint with an enhanced spectrum portfolio that will strengthen its position in U.S. market. 

Operator is aiming for better strategic alignment and the full utilization and integration of Clearwire’s complementary 2.5 GHz spectrum, while achieving operational efficiencies and improved service for customers as the spectrum and network is migrated to LTE.

Clearwire and Sprint have also entered into agreements that provide up to $800 million of additional financing for Clearwire. Interim funding allows Clearwire to continue LTE build-out and complement Sprint’s LTE deployment.

The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Clearwire’s stockholders. This transaction results in a total Clearwire enterprise value of approximately $10 billion, including net debt and spectrum lease obligations of $5.5 billion. The closing of the transaction is also contingent on the consummation of Sprint’s previously announced transaction with SoftBank. The Clearwire and SoftBank transactions are expected to close mid-2013.