Wireless carrier Sprint has announced today that it has reached an agreement with iPCS, Inc for the purchase of the latter. The deal is estimated at around $831 million and should be closed before the end of the ongoing year or at the beginning of the next one. According to Sprint, it should achieve around $30 million of synergies annually, and the transaction should be free cash flow accretive to Sprint in 2010. The deal will also prevent Sprint from divesting its iDEN network in certain iPCS territories, the duo announced.

The agreement between the two companies also states that Sprint Nextel will commence a cash tender offer for the purchase of iPCS’ outstanding common shares for the price of $24.00 per share. According to the wireless carrier, the price shows a 34 percent premium when compared to iPCS’ closing stock price on October 16. Moreover, the company also announced that any remaining shares from iPCS that wouldn't be purchased in the tender would be acquired later in a cash merger at the same price per share.

“We are very pleased to have reached this agreement with Sprint Nextel. Given the increasingly competitive landscape, we believe this is an opportune time to provide our shareholders with a liquidity event at a very attractive price. iPCS shareholders will receive a significant and immediate premium for their shares and our customers will continue to receive the same excellent service from the same dedicated people who provide that service today,” said Timothy M. Yager, president and CEO of iPCS. “We look forward to working with the Sprint Nextel team to ensure a smooth completion of the transaction and transition in the coming months.”

According to the two companies, iPCS shareholders with around 9.5 percent of the outstanding common shares have already agreed with the transaction. However, the deal is still subject to regulatory approvals and other conditions. The agreement also rules that all pending litigation between the parties will be suspended, while the final resolution will become effective as soon as the deal is closed. “Acquiring iPCS brings added value to Sprint by expanding our direct customer base, growing our direct coverage area and simplifying our business operations,” said Dan Hesse, CEO of Sprint Nextel. “Customers in iPCS territory will see a seamless transition and continue to enjoy a superb customer experience.”