Verizon said on Thursday that it had entered into a definitive agreement to acquire Frontier, a leading fiber Internet provider, for $20 billion in cash.
The limit is one almost 90 years old The telecommunications company that filed for bankruptcy in 2020 after taking on billions of dollars in debt. border emerged from bankruptcy in 2021 with a fiber focus and after years of effort and $4.1 billion in investment, it has grown its customer base to 2.2 million households in 25 states. The company plans to add 2.8 million new locations to fiber connections by the end of 2026.
Verizon decided to buy Frontier to become more competitive in the fiber internet market. From April 2022AT&T Fiber and Crown Castle Fiber had 12.17% and 11.59% of the US market, respectively, compared to 10.74% for Verizon Fios.
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“The acquisition of Frontier is a strategic fit,” said Verizon Chairman and CEO Hans Vestberg. in a statement. He added that the acquisition would help Verizon “deliver premium offerings to millions more customers through a combined fiber network.”
Verizon Chairman and CEO Hans Vestberg. Photo by Drew Angerer/Getty Images
The Frontier acquisition brings Verizon's fiber footprint to 10 million homes by 2026, up from the roughly 7 million Verizon has today.
Verizon expects to save at least $500 million in annual costs after the acquisition.
The transaction, which has been unanimously approved by the board of directors of both companies, is expected to close in about 18 months.
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