The deal will give Best Buy full control of the mobile business, which expanded rapidly in the last few years along with the rise of consumer smartphones. The deal also ends a profit-sharing agreement with Carphone Warehouse that Best Buy made in 2008 to expand its presence in the cellphone market. However, both companies will continue to work together in expanding the business into emerging markets, such as Mexico and China.
Best Buy hopes to close the acquisition by March 2012. Money from the Best Buy Mobile sale would be returned to Carphone Warehouse shareholders.
The move comes just after Best Buy announced another large acquisition this morning: It agreed to acquire IT and cloud services provider mindSHIFT for $167 million to help extend its business further beyond retail. Also, Best Buy revealed that the company will abandon plans to expand its retail stores across Europe. Due to the European debt crisis, the company has chosen to close its 11 brick and mortar store locations in Britain, which employ over 1,000 people.