Verizon acquires Frontier for $20 billion, expands Fios service to 22 new states

Verizon is expanding its Fios service to 22 new states by acquiring Frontier Communications Parent for $20 billion. The all-cash transaction is meant to significantly expand Verizon’s fiber footprint across the country, as well as the carrier’s intelligent edge network for digital innovations like AI and IoT.Following the deal, Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in 9 states and Washington, D.C. Besides 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.

“The acquisition of Frontier is 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,” said Verizon Chairman and CEO Hans Vestberg.

Verizon and Frontier’s fiber networks | Image credit: Verizon

Upon closing the deal, Frontier’s consumer fiber network will be immediately integrated directly into Verizon’s Fios network. Frontier and Verizon have approximately 10 million fiber customers across 31 states and Washington D.C. with fiber networks passing over 25 million premises.More details about the transaction reveal that will acquire Frontier for $38.50 per share in cash. The transaction is valued at approximately $20 billion of enterprise value. More importantly, Verizonsays that the transaction is expected to close in approximately 18 months, subject to approval by Frontier shareholders, receipt of certain regulatory approvals and other customary closing conditions.



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