Verizon to buy Frontier Communications in $20bn cash deal

Verizon Communications said on Thursday that it has agreed to buy Frontier Communications, the largest pure-play fibre internet provider in the US, for $20bn in cash.

Under the terms of the agreement, Verizon will pay $38.50 per share in cash, which is a premium of about 43.7% to Frontier’s 90-day volume-weighted average share price on 3 September, the last trading day before media reports of a potential deal emerged.

Verizon said the acquisition will significantly expand its fibre footprint across the nation, accelerating the company’s delivery of premium mobility and broadband services to current and new customers. It will also expand Verizon's intelligent edge network for digital innovations like AI and IoT.

Verizon chairman and chief executive Hans Vestberg said: "Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon.

"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."

The combination will integrate Frontier’s fibre network into Verizon's portfolio of fibre and wireless assets, including its best-in-class Fios offering.

Verizon noted that over approximately four years, Frontier has invested $4.1bn upgrading and expanding its fibre network, and now derives more than 50% of its revenue from fibre products.