Softbank, the cellphone service provider that brought Apple’s iPhone to Japan, said on Monday that it would buy a smaller rival, eAccess, for about $2.3 billion in stock, in the face of intensifying competition.
Under the terms of the deal, Softbank will pay 52,000 yen a share, more than three times the eAccess closing price of 15,070 yen on Friday.
The large premium reflects Softbank’s desire to bolster its mobile broadband capacity as it looks to attract more smartphone users. After the deal, Softbank would have more than 39 million subscribers, making it the second-biggest network operator in Japan, behind NTT DoCoMo.
Read the rest of the story: Softbank of Japan to Buy Rival eAccess for $2.3 Billion.