Verizon he said on Thursday that it has entered into a definitive agreement to accumulate Frontier, a leading fiber-optic web provider, for $20 billion in money.
The border is almost 90 years old telecommunications company that filed for bankruptcy in 2020 after racking up billions of dollars in debt. Frontier ended bankruptcy in 2021. with a focus on fiber and after years of effort and $4.1 billion in investment, the company has grown its customer base to 2.2 million homes in 25 states. The company plans so as to add 2.8 million latest locations for fiber connections by the end of 2026.
Verizon decided to accumulate Frontier to extend its competitiveness in the fiber web market. As of April 2022AT&T Fiber and Crown Castle Fiber had 12.17% and 11.59% of the US market share, respectively, in comparison with 10.74% for Verizon Fios.
“The acquisition of Frontier is a strategic fit,” said Hans Vestberg, Verizon chairman and CEO, in the statementHe added that the acquisition will help Verizon “deliver premium offerings to millions of customers over a combined fiber network.”
Verizon Chairman and CEO Hans Vestberg. Photo by Drew Angerer/Getty Images
With the acquisition of Frontier, Verizon’s fiber network will reach 10 million homes by 2026, up from the 7 million homes Verizon currently serves.
Verizon expects to save lots of at least $500 million in annual costs following the acquisition.
The transaction, which has been unanimously approved by the boards of each firms, is expected to shut inside roughly 18 months.