Verizon to Acquire Frontier Communications for USD 20 Billion

American telecommunications company Verizon Communications has agreed to acquire Frontier Communications (Frontier) in an all-cash transaction valued at USD 20 billion. Verizon said this acquisition of the largest pure-play fiber internet provider in the US will significantly expand its fiber footprint nationwide, enabling the delivery of mobility and broadband services to both existing and new customers. Verizon expects the deal to be accretive to revenue and adjusted EBITDA upon closing, with the potential to generate at least USD 500 million in annual run-rate cost synergies.

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Also Read: Frontier Trials 100G PON Technology in North America

Premium Price and Synergy Goals

Under the agreement, Verizon will pay USD 38.50 per share in cash, representing a 43.7 percent premium over Frontier’s 90-day volume-weighted average share price as of September 3, 2024. The acquisition will integrate Frontier’s fiber network into Verizon’s portfolio of fiber and wireless assets, including its Fios service.

Frontier’s Fiber Footprint

Frontier currently serves 2.2 million fiber subscribers across 25 states. Over the past four years, the company has invested USD 4.1 billion to upgrade its fiber network, which now contributes over 50 percent of its revenue. Verizon, which already has 7.4 million Fios connections, will add Frontier’s 7.2 million fiber locations and benefit from Frontier’s plans to build 2.8 million more by 2026.

Verizon said: “The acquisition of Frontier is a strategic fit. It builds on Verizon’s two decades of leadership in fiber and presents an opportunity to become more competitive in more markets across the United States, enhancing our ability to deliver premium offerings to millions of additional customers through a combined fiber network.”