MIAMI, Oct. 18, 2013 /PRNewswire/ -- Brightstar
Corp. ("Brightstar") and SOFTBANK CORP. ("SoftBank") (TSE: 9984)
today announced a definitive agreement for SoftBank to invest
$1.26 billion in Brightstar, enabling
Brightstar to expand its scale, and further its position as a
leading provider of services for the wireless industry.
(Logo:
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As part of the transaction, the Buying & Innovation Group,
"BIG," a joint venture created to realize savings and efficiencies
for SoftBank, Sprint, and Brightstar, will become a division of
Brightstar.
SoftBank has investments in over 1300 entities across the world
in many industries, and chose Brightstar for its leading position
in the wireless ecosystem. SoftBank's investment, which values
Brightstar at $2.2 billion, including
its existing outstanding debt, is the next step in Brightstar's
evolution. The transaction will have benefits for both companies,
including:
- Brightstar will become the exclusive provider of handsets,
accessories, and services to certain SoftBank telecommunications
affiliates
- Brightstar, leveraging certain SoftBank telecommunications
affiliates, will buy over $20 billion
in handsets, accessories, and services making it one of the leading
buyers of mobile devices and accessories in the world
- Both companies will leverage Brightstar's local presence in
over 50 countries to commercialize products and services offered by
SoftBank, its affiliates, and its investment companies reaching
more than 90,000 points of sale worldwide, more than 200 mobile
network operators, 40,000 retailers, and 15,000 enterprises
- Brightstar will have a preferential right to provide services
including distribution, supply chain, handset insurance, buy-back
& trade-in, multi-channel retail, and financial services to
certain SoftBank telecommunications affiliates
"SoftBank's investment in Brightstar solidifies our position as
the leading distribution, services, and innovation company in the
world for the wireless industry," said Brightstar Founder, Chairman
and CEO, Marcelo Claure. "Our
alliance with SoftBank provides additional products and services to
Brightstar's already best-in-class services allowing us to better
serve our customers in more than 125 countries where we do
business."
"SoftBank has a proven track-record of investing in companies
that are leading innovation in their respective industries," said
Masayoshi Son, Founder, Chairman,
and CEO of SoftBank Group. "Brightstar has been a model of
innovation, transforming from a regional wireless distributor
into the world's leading provider of services to the wireless
industry and we are excited about what that will mean for the
SoftBank Group."
Today, Brightstar has a local presence in over 50 countries,
earning revenues in excess of $7
billion and EBITDA of approximately $260 million for the 12 months ending
June 2013.
SoftBank is financing the transaction with cash on hand. In
addition to its $1.26 billion cash
investment, and as part of a liability management exercise,
SoftBank intends to guarantee Brightstar's outstanding $350 million senior unsecured notes due 2016 and
$250 million senior unsecured notes
due 2018.
After the transaction:
- Brightstar will continue its focus on providing best-in-class
service for its customers
- Brightstar's global headquarters will remain in Miami, Florida
- Mr. Claure will continue as President and CEO of
Brightstar
- SoftBank will own approximately 57% and Mr. Marcelo Claure will own approximately 43% of
Brightstar shares on an outstanding basis
- Over the next 5 years, or upon certain events, SoftBank's
ownership will accrete to 70%
The transaction has been approved by the Board of Directors of
SoftBank. Completion of the transaction is subject to customary
regulatory approvals. The companies expect the closing of the
transaction to occur by the end of 2013.
Goldman, Sachs & Co. acted as exclusive financial advisor to
Brightstar and Cleary Gottlieb Steen
& Hamilton LLP and K&L Gates LLP acted as counsel to
Brightstar. The Raine Group LLC acted as exclusive financial
advisor to SoftBank and Morrison & Foerster LLP acted as lead
counsel to SoftBank.
About Brightstar
Brightstar is the world's largest specialized wireless
distributor and a leading provider of diversified services focused
on enhancing the performance and results of the key participants in
the wireless device value chain: manufacturers, operators and
retailers. For more information, please visit
http://www.brightstarcorp.com
About SoftBank
SoftBank Corp. (TSE:9984) is a pure holding company with more
than 1,300 Group subsidiaries and affiliates that offer a
comprehensive range of mobile communications, fixed-line
communications and Internet services. With Sprint Corporation
joining SoftBank in July 2013, the
Group became a leading global carrier with close to 100 million
subscribers. Maximizing synergies across its Group companies
worldwide, SoftBank aspires to realize lifestyle innovation through
IT. SoftBank is also encouraging the adoption of clean and safe
energy through its business activities. To learn more, please visit
http://www.softbank.jp/en/corp/
SOURCE Brightstar Corp.