Sprint Nextel Corp. said Monday that it will pay about $4.3 billion to acquire Lubbock-based Alamosa Holdings Inc., which sells Sprint PCS cellular service in 19 states. The deal would give Sprint Nextel ownership of its largest Sprint PCS affiliate.

The transaction, which includes the assumption of about $900 million in debt, will change about 1.48 million Alamosa subscribers into direct Sprint customers. Alamosa's territory covers about 20 million potential customers.

"This transaction will significantly expand our direct customer base and territory, and will provide additional value for our shareholders," Sprint Nextel president and chief executive Gary Forsee said.

"We are pleased to accept Sprint's offer to acquire our company," Alamosa chairman and CEO David Sharbutt said. "We have enjoyed a successful business relationship with Sprint that has benefited both companies."

Alamosa has exclusive rights to sell Sprint Nextel service in territories in Texas, Arizona, Arkansas, California, Colorado, Illinois, Kansas, Minnesota, Missouri, New Mexico, Oklahoma, Oregon, Utah, Washington and Wisconsin. It will add markets in Georgia, South Carolina, North Carolina and Tennessee by year's end.

Alamosa added the southeastern U.S. states when it purchased another Sprint PCS affiliate, AirGate PCS Inc., in a transaction that closed in February. AirGate remains a subsidiary of Alamosa.

Through Sept. 30, Alamosa reported a net loss of $6.9 million on revenues of $349.4 million. On a pro forma basis including AirGate for the entire year, its nine-month net income was $548,000.

If completed, the purchase also would resolve a legal dispute between Alamosa and Sprint Nextel alleging that Sprint had infringed on AirGate's exclusivity rights.

"As part of the agreement, Sprint Nextel and AirGate will seek an immediate stay of litigation pending in the Delaware Court of Chancery, with a final resolution to become effective upon closing of the acquisition," Sprint Nextel and Alamosa officials said in a joint news release.

William Power, analyst with Robert Baird, said with the Alamosa purchase, Sprint has acquired four of its affiliates. That leaves it with six independent affiliates selling Sprint products.

"We believe the transaction could signal Sprint's desire to acquire its remaining affiliates rather than entering into new affiliate agreements," Mr. Power said in a research report Monday.

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