T-Mobile and Sprint have announced they have entered into a definitive agreement to merge in an all-stock transaction.

T-Mobile will acquire Sprint for approximately $26 billion, at a fixed exchange ratio of 9.75 Sprint shares for each T-Mobile share

The combined company will be called T-Mobile.

The new company claims it will have the network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable US firms and entrepreneurs to lead the world. The company also claims it will be able to light up its 5G network faster than either company could separately or than its competitors AT&T[1] and Verizon[2].

T-Mobile majority-owner Deutsche Telekom[3] will own roughly 40 percent of the combined company. Along with Japan's SoftBank[4], they will have voting control of the new telecom.

In the past, clashes over who calls the shots stopped the deal[5].

After the deal is closed, the new company will be headquartered in Bellevue, Washington, with a second headquarters in Overland Park, Kansas.

John Legere, T-Mobile's chief executive officer, will serve as the combined companies' chief executive. Mike Sievert, T-Mobile's current chief operating officer, will additionally serve as president of the combined company.

The remaining members of the new management team will be selected from both companies during the closing period. Tim Höttges, T-Mobile's current US chairman of the board, will serve as chairman of the board for the new company. Masayoshi Son, current SoftBank Group chairman and CEO, and Marcelo Claure, Sprint's current chief executive, will serve on the board of the new company.

"This combination will create a fierce competitor with the network scale to deliver more

Read more from our friends at ZDNet