The overview
If completed, the deal would expand Verizon’s fiber network service “Fios” into Texas, where Frontier Communications currently offers services in select areas. Frontier Communications operates 7.2 million fiber locations in 25 states across the U.S with plans to add 2.8 million more locations by the end of 2026, according to a Sept. 5 news release.
The transaction is expected to close in 2026 and is still subject to approval by Frontier shareholders and regulatory approval. It has already been approved by both companies’ boards of directors, according to the news release.
Under the terms of the agreement, Verizon will acquire Frontier for $38.50 per share in cash. The transaction is valued at approximately $20 billion.
Zooming in
Frontier Communications offers broadband internet services in several Texas cities, including Austin, Houston, Plano and Richardson, according to its website. The company also offers fiber network internet service in select areas throughout the state.
On the other hand, Verizon’s “Fios” service is not currently available in Texas, according to its website. The company offers fiber network coverage in several states including Delaware, New Jersey and Massachusetts. Verizon does offer broadband internet service in several cities throughout Texas.
The deal will increase Verizon’s fiber network subscribers by about 2.2 million if completed, according to the news release.
Quote of note
Verizon Chairperson and CEO Hans Vestberg said in a statement the acquisition is a strategic fit.
“It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to be 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.
In a statement, Frontier President and CEO Nick Jeffery said the announcement was a recognition of the company’s progress in providing internet for millions of customers.
“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,” he said.
