STORY: Verizon said Thursday (September 5) it will buy Frontier Communications in a deal worth $20 billion.
The acquisition would see the U.S. wireless carrier expand its fiber network beyond its core region in the American Northeast and mid-Atlantic into the Midwest, Texas, and California.
Verizon CEO Hans Vestberg called Frontier a strategic fit and an opportunity to become more competitive in more markets across the U.S.
Frontier has 2.2 million fiber subscribers across 25 states.
If the deal goes ahead, it will combine with Verizon's about 7.4 million bundled services in nine states and Washington, D.C.
And it could help Verizon better compete against rival AT&T and others in delivering premium broadband services to existing customers, and new ones, too.
It is also seen adding to Verizon's revenue and adjusted profit.
Verizon offered $38.50 per share in an all-cash offer, a premium of more than 37% above Frontier's closing price on Tuesday.
Frontier's shares had surged nearly 38% in the previous session, but fell below Verizon's offer price in premarket trading Thursday.
Verizon climbed about 1%.
The acquisition is expected to close in about 18 months.
