Verizon, one of the largest wireless service providers in the US, announced its planned $20 billion acquisition of Frontier Communications. This significant all-cash deal is a key step for Verizon to expand its fibre-optic network, enabling it to strengthen its competitiveness in the rapidly expanding broadband market.
The acquisition is expected to be completed within 18 months and will help the company better counter competitors such as AT&T.
Verizon's fibre network expansion
Verizon $VZ offered Frontier Communications shareholders $38.50 per share, a premium of 37.3% to Frontier's closing share price on September 3, when news of the potential deal first surfaced. Frontier Communications now has $11.25 billion in debt and serves 2.2 million customers connected to its fiber-optic network in 25 states. The merger with Verizon, which has about 7.4 million connections to its own FiOS fiber-optic network in nine states and Washington, D.C., will create one of the largest fiber-optic…