Verizon to Acquire Frontier Communications in $20 Billion All-Cash Deal

New York, NY - Verizon announced on Thursday its agreement to acquire Frontier Communications in an all-cash deal valued at $20 billion. This strategic move is aimed at bolstering Verizon’s fiber network, positioning the company to better compete against industry giants like AT&T. 

Under the terms of the deal, Verizon has offered $38.50 per Frontier share, representing a 37.3% premium over Frontier’s closing price on September 3, just before rumors of the acquisition surfaced. The transaction is expected to close within the next 18 months, pending regulatory approvals. 

The acquisition will significantly expand Verizon’s fiber footprint across the United States. Frontier, which boasts 2.2 million fiber subscribers across 25 states, will be integrated with Verizon’s existing Fios network, which currently serves approximately 7.4 million connections in nine states and Washington, D.C. Verizon’s current fiber coverage is primarily concentrated in the Northeast and mid-Atlantic regions, while Frontier’s network spans the Midwest, Texas, California, and other regions.

Hans Vestberg, CEO of Verizon, hailed the acquisition as a "strategic fit" that builds on Verizon’s two decades of leadership in the industry. "This is an opportunity to become more competitive in more markets throughout the United States," Vestberg said in a statement.

The deal is expected to generate at least $500 million in annual cost synergies and contribute to Verizon’s revenue growth and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) once completed.

Following the announcement, Frontier Communications’ shares fell by over 9% in premarket trading, while Verizon’s stock saw a modest increase of about 1%. The market’s reaction reflects the anticipation of a more competitive landscape in the U.S. broadband market as Verizon positions itself to deliver premium broadband services to both existing and new customers across a broader geographic area.