The acquisition of Frontier, one of the largest fiber optic providers in the U.S., is expected to add 2.2 million fiber subscribers to Verizon's network. The deal will extend Verizon's reach to 25 million people, covering 31 states and Washington, D.C. Frontier's significant investment in fiber infrastructure over the past four years, $4.1 billion, has positioned the company as a key player in the broadband market, with more than half of its revenues now coming from fiber products.

Verizon expects the agreement to be accretive to its revenue and adjusted EBITDA growth rates from closing. In addition, the company projects at least $500 million in annual cost savings. The acquisition aligns with Verizon's long-term strategy of growing and strengthening customer relationships, and is expected to expand its share of the national broadband market.

USD 38.50 per share

Under the terms of the agreement, Verizon will acquire Frontier for $38.50 per share in cash. The transaction, which has been approved by the Boards of Directors of both companies, is expected to close in approximately 18 months, subject to regulatory approvals and other customary closing conditions. Despite the size of the acquisition, Verizon reaffirms its guidance for the full year 2024, including total wireless revenue growth and capital expenditures.