Ryan Reynolds-backed Mint Mobile part of US$1.35B acquisition

T-Mobile US Inc. said on Wednesday it will buy Ka’ena Corp, the owner of Ryan Reynolds-backed budget services provider Mint Mobile, for up to $1.35 billion, as the telecom operator seeks sustain growth in a competitive market.

The deal will give T-Mobile access to a larger share of its paying customer base, which is expected to grow as people with bad credit avoid heavy monthly payments.

It would also be a boost to T-Mobile’s business at a time when advances by rivals Verizon and AT&T have raised its churn rate, which refers to the percentage of customers who stop using service.

The agreement consists of 39% cash and 61% stock, with the final purchase price to be determined by Ka’ena’s performance over certain periods before and after the closing of the transaction, which is expected later this year.

The acquisition will slightly add to T-Mobile’s underlying adjusted earnings, but is not expected to impact its outlook for the year.

“In the long term, we will also benefit from applying the marketing formula that Mint has made popular to more parts of T-Mobile,” said T-Mobile CEO Mike Sievert.

Mint is known for its marketing tactics, often represented by part owner Reynolds. At the start of the pandemic in 2020, the “Deadpool” star left a voicemail for users informing them that the company had provided them with unlimited free data.

Reynolds’ portfolio also includes British football club Wrexham and Aviation American Gin, which It was sold to Diageo for about $610 million in 2020. The actor, however, retains a “continuing ownership interest” in Aviation Gin.

(Reporting by Akash Sriram in Bengaluru Editing by Saumyadeb Chakrabarti and Uttaresh Venkateshwara)