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A definitive agreement was reached today when the board of directors of Sprint Nextel and Virgin Mobile USA agreed to Sprint purchasing Virgin Mobile for $483 million.  Virgin Mobile is perhaps best known for their prepaid phone sales and Sprint plans to use Virgin Mobile to improve their standings in the prepaid phone department.

If you are still a Virgin Mobile customer, fear not as all account information will be transferred under the new ownership.  In addition, Sprint CEO Dan Hesse has placed long time associate Dan Schulman in charge of Sprint’s prepaid business.  He was the former Virgin Mobile USA chief executive officer.  He will be reporting directly to Hesse, therefore he will be a high ranking member within Sprint.  Hesse hopes Schulman can facilitate business growth within prepaid phone sales. 

Here is what Hesse had to say about the acquisition:

“The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment. Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.”

Such a move definitely benefits Sprint as a whole since it brings them more customers to purchase prepaid phones, and possibly even purchase a Sprint contract for a new phone.  In addition, Schulman brings strong leadership and experience to Sprint’s prepaid department. 

Read [Sprint Press Release]