A joint venture between Dixons Carphone and Sprint to launch retail stores across the US has ended with the mobile operator buying out the UK company.
Sprint has paid an undisclosed amount for the 50 percent stake Dixons Carphone’s Connected World Services (CWS) division acquired in the JV, which was first announced in July 2015.
At the time, Dixons Carphone said it planned to invest up to $32 million to acquire the stake.
The two companies had hoped to launch up to 500 stores but Sprint takes over full ownership with the total amount at around the 100 mark.
They cited the changing US mobile market landscape and Sprint’s review of its own distribution strategy as reasons for ending the partnership.
Sprint will continue to honour a March 2016 agreement to roll out CWS’s omnichannel retail platform honeyBee across its stores.
Andrew Harrison, Dixons Carphone Deputy Group CEO, said: “We have enjoyed working with Sprint to accelerate their store opening programme over the last two years and have developed an estate and a pipeline to help support their ambitious growth plans.
“With the significant shift in the US mobile market, now is the right time to transfer these stores to Sprint, and to concentrate on our exciting software business, honeyBee.”
Kevin Crull, President of Omnichannel sales at Sprint, added: This partnership achieved its objective of accelerating Sprint’s retail transformation.
“We thank the team at Dixons Carphone and look forward to leveraging their innovative platform across Sprint stores as we to continually enhance our customer experience.”