Verizon Purchasing Frontier Communications For $20 Billion

September 6, 2024

Verizon Communications is buying Frontier Communications for $20 billion in cash. The purchase will increase Verizon’s scale with 2.2 million fiber subscribers and will extend Verizon’s network reach to 25 million premises across 31 states and Washington, D.C.’

In the North Escambia area, Frontier is local telephone company that still provides traditional landline service and DSL in Walnut Hill, Molino, Bratt and Atmore. The company does not currently offer fiber in the North Escambia area.

Over approximately four years, Frontier in other areas of the nation has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than half of its revenue from fiber products at 7.2 million fiber locations. Frontier s committed to its plan to build out an additional 2.8 million fiber locations by the end of 2026.

Frontier has not announced any specific plans for their local markets.

According to the companies, Frontier customers as a whole will have has access to Verizon premium offerings and experience for Frontier’s consumer and small business customers, and Frontier’s premium broadband offering will unite with Verizon’s premium mobile offering.

Additional 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 the 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.

Pictured: The Frontier Communications switching central office in Bratt. NorthEscambia.com file photo, click to enlarge

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Written by William Reynolds · Filed Under FRONT TOP 

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