Verizon and Frontier Communications today announced they have entered into a definitive agreement for Verizon to acquire Frontier in an all-cash transaction valued at $20 billion.
The acquisition of a major fiber provider will expand Verizon's fiber footprint across the U.S.
The combination will integrate Frontier’s fiber network into Verizon's fiber and wireless assets, including Fios. Frontier has invested $4.1 billion upgrading and expanding its fiber network over four years, and now derives more than 50% of its revenue from fiber products.
Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in nine states and Washington, D.C. In addition to Frontier’s 7.2 million fiber locations, the company says it intends to build out an additional 2.8 million fiber locations by the end of 2026.
Transaction details
Under the terms of the agreement, Verizon will acquire Frontier for $38.50 per share in cash, representing a premium of 43.7% to Frontier’s 90-Day volume-weighted average share price (VWAP) on September 3, 2024, the last trading day prior to media reports regarding a potential acquisition of Frontier. The transaction is valued at approximately $20 billion of enterprise value.
The transaction has been unanimously approved by the Verizon and Frontier Boards of Directors. The transaction is expected to close in approximately 18 months, subject to approval by Frontier shareholders, receipt of certain regulatory approvals and other customary closing conditions.