The Softbank-Sprint acquisition is official. The earlier rumored Sprint acquisition by Softbank has been announced by the Japanese telecoms company itself. In a press event in Tokyo, Softbank has announced that it will merge with Sprint to form a new company.

It is interesting to note that both companies are ranked third in both their respective markets (U.S. and Japan). As for the acquisition terms, Softbank will acquire US$ 8 billion in newly-issued Sprint shares, as well as $12.1 billion in existing shares from the market. This will result in a 70% stake in the American carrier.

Based on the Strategic Acquisition document from Softbank, the acquisition has the following merits:

• This will enable the company to establish an operating base as one of the largest mobile Internet companies worldwide;
• The deal will enable Softbank to leverage its expertise in smartphones and next-gen mobile networks to enhance Sprint's competitiveness in the U.S.
• The deal will provide $8 billion in fresh capital for Sprint.

You can check out the source link (PDF) for a more technical explanation of the deal. Do you think this capital infusion will help both carriers grow in their respective markets, in terms of mobile and Internet offerings and customer base?