Pre-paid mobile phone service makes a lot of sense for many users. You don’t have to sign long contracts and there is no credit check when you get a new device. The only big drawbacks are that the newest and coolest handsets aren’t typically on pre-paid plans.

Sprint has announced that it is paying $438 million to purchase Virgin Mobile USA. Virgin is the pre-paid U.S. arm of the mobile provider based in Europe. Sprint will maintain Virgin Mobile USA as a seperate brand, which should leave Sprint’s Boost Mobile operating as well.

Sprint will pay off Virgin’s debt as part of the deal, expected to cost the provider about $205 million. The Virgin Mobile USA brand isn’t part of the deal and to use it Sprint will license the brand from the Virgin Group for $12.7 million lasting until December 31 2021.

[via SlashGear]