Sprint Nextel has been busy with its most popular smartphone having hit stores last month called the Palm Pre. The company announced today that it is buying Virgin Mobile USA for a total equity value of $438 million.

The price includes the value of the 13.1% that Sprint already owns in the company. At closing Sprint says that it will retire all outstanding debt of Virgin Mobile USA, amounting to $248 million. The purchase will strengthen the pre-paid offerings of Sprint the company says.

The Sprint pre-paid offerings will be headed by Virgin Mobile USA CEO Dan Schulman once it closes with Boost Mobile retaining its management team. Stock holders in Virgin Mobile USA will get shares in Sprint worth $5.50 per share.

Via Sprint