News
U.S. operator completes divestment of fixed-line, broadband and TV customers in California, Florida and Texas.
Verizon Communications has completed the sale of fixed-line assets in three U.S. states to Frontier Communications in a deal valued at US$10.54 billion.
The deal covers the transfer of 3.3 million voice connections, 2.1 million broadband connections and 1.2 million FiOS video customers, as well as the related local exchange carrier businesses, in California, Florida and Texas.
9,400 Verizon employees will also move to Frontier.
The U.S. operators agreed the deal over a year ago and received regulatory approval in September. They came close to completing the deal by the end of the first quarter of this year as planned.
"This is a transformative acquisition for Frontier that delivers first-rate assets and important new opportunities given our dramatically expanded scale," said Frontier CEO Daniel McCarthy, late last week.
"It significantly expands our presence in three high-growth, high-density states, and improves our revenue mix by increasing the percentage of our revenues coming from segments with the most promising growth potential," he added.
Verizon said the deal enables it to concentrate its landline operations in contiguous markets in the north east of the U.S., enhancing the efficiency of its sales, marketing and customer service operations in the remaining footprint.
"It also allows Verizon to further strengthen and extend its industry leadership position in the U.S. wireless market, while returning value to Verizon’s shareholders," it added.
The operator said the $10.54 billion purchase price will amount to around $7.5 billion, net of income taxes, subject to adjustments and including Frontier’s assumption of $0.6 billion in debt.
It will use the proceeds of the deal to pay down debt.
