Verizon Acquires Frontier Communications in $20B Deal

Verizon is acquiring Frontier Communications in an all-cash transaction valued at $20 billion. 

The acquisition would significantly expand Verizon’s fiber network across the U.S., accelerating the company’s ability to provide the delivery of mobility and broadband services to both existing and new customers. It also would expand Verizon's intelligent edge network for AI and IoT digital innovations, extending Verizon’s reach to 25 million locations across 31 states and Washington, D.C.

Verizon plans to integrate Frontier’s fiber network into its portfolio. Frontier has invested $4.1 billion in upgrades and expansion of its fiber network, deriving more than 50% of its revenue from fiber products over the past four years. 

Frontier has 2.2 million fiber subscribers in 25 states that join Verizon’s 7.4 million FiOS connections in nine states and Washington, D.C. Along with Frontier’s fiber locations, Verizon plans to build an additional 2.8 million fiber locations by the end of 2026.

Verizon chairman and CEO Hans Vestberg said connectivity is essential in nearly every part of life and work. 

“The acquisition of Frontier is a strategic fit,” Vestberg said. “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.”

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“Less than four years ago, we set out an ambitious plan to build gigabit America, the digital infrastructure this country needs to thrive for generations to come,” said Nick Jeffery, president and CEO of Frontier. “Today’s announcement 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.”

The boards of both Verizon and Frontier unanimously approved the transaction, which is expected to close within 18 months, pending approval from Frontier’s shareholders and regulatory authorities.