T-Mobile US and Sprint have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share.

The deal sees the third and fourth largest mobile providers in the US combining. Sprint was valued at US$26 billion based on its last closing price, and T-Mobile was last valued at US$55 billion.

Based on closing share prices on April 27, this represents a total implied enterprise value of approximately US$59 billion for Sprint and approximately US$146 billion for the combined company.

“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” said T-Mobile US President and CEO  John Legere. “As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.”

In a statement, the firms said the combined company will be named T-Mobile, and flagged it will be a “force for positive change in the US wireless, video, and broadband industries.”

“The new company will be able to light up a broad and deep 5G network faster than either company could separately,” the firms said. “T-Mobile deployed nationwide LTE twice as fast as Verizon and three times faster than AT&T, and the combined company is positioned to do the same in 5G with deep spectrum assets and network capacity.”

Following closing, the new company will be headquartered in Bellevue, Wash., with a second headquarters in Overland Park, Kan.

John Legere, current President and CEO of T-Mobile US will serve as chief exec, and Mike Sievert, current CEO of T-Mobile, will serve as President and CEO of the combined company.

Tim Höttges, current T-Mobile US Chairman of the Board, will serve as Chairman of the Board for the new company. Masayoshi Son, current SoftBank Group Chairman and CEO, and Marcelo Claure, current CEO of Sprint, will serve on the board of the new company.

competitors to follow suit, as they always do, which will benefit the entire country. I am confident this combination will spur job creation and ensure opportunities for Sprint employees as part of a larger, stronger combined organization, and I am thrilled that Kansas City will be a second headquarters for the merged company.”