SoftBank Snags $1.26 Billion Stake in Brightstar
Japan’s SoftBank said on Friday that it is investing $1.26 billion to take a majority stake in wireless distributor Brightstar as part of an effort to centralize purchasing for Sprint and SoftBank’s other wireless units and affiliates.
The deal, expected to close later this year, values Brightstar at $2.2 billion. SoftBank will own approximately 57 percent of the company, while Brightstar founder and CEO Marcelo Claure will own approximately 43 percent of Brightstar shares. Over the next five years, SoftBank’s ownership will grow to 70 percent, the companies said.
Once the transaction is finalized, Brightstar will be purchasing over $20 billion per year in handsets, accessories and services. The company’s current annual revenue is about $7 billion.
“SoftBank’s investment in Brightstar solidifies our position as the leading distribution, services, and innovation company in the world for the wireless industry,” Claure said in a statement.
In July, SoftBank completed its deal to grab a majority stake in Sprint, following a tussle with Dish’s Charlie Ergen.