Verizon Communications and Frontier Communications announced Thursday that they have entered into a definitive agreement for Verizon to acquire Frontier in an all-cash transaction valued at $20 billion.
The acquisition of the largest pure-play fiber internet provider in the U.S. will significantly expand Verizon’s fiber footprint across the nation and expand Verizon’s intelligent edge network for digital innovations like AI and IoT, the company said in a news release.
The announcement comes eight years after Frontier acquired Verizon’s wireline, broadband and FiOS for over $10.5 billion.
“The combination will integrate Frontier’s cutting-edge fiber network into Verizon’s leading portfolio of fiber and wireless assets, including its best-in-class Fios offering,” Verizon said in a statement.
Over about four years, Frontier has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than 50% of its revenue from fiber products, the news release said. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s 7.4 million Fios connections in nine states and Washington, D.C. In addition to Frontier’s 7.2 million fiber locations, the company is committed to its plan to build out an additional 2.8 million fiber locations by the end of 2026.
“Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon,” said Verizon Chairman and CEO Hans Vestberg. “Verizon offers more choice, flexibility and value, and we continuously look for ways to provide the best product and network experience to our customers as we bolster our position as the provider of choice.”
Vestberg called the Frontier acquisition a “strategic fit.”
“It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network,” he said.
Nick Jeffery, President and CEO of Frontier, said the acquisition “is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country.”
“It’s also a vote of confidence for the future of fiber,” Jeffery said. “I am confident that this delivers a significant and certain cash premium to Frontier’s shareholders, while creating exciting new opportunities for our employees and expanding access to reliable connectivity for more Americans.”
