Verizon Tables $50 Billion in All-Cash For The Acquisition Of Frontier
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Verizon has finalized plans to acquire Frontier for $20 billion, according to a recent report. The deal will be executed in an all-cash transaction as the connectivity industry looks to take another turn.
The acquisition is a strong statement in the industry, given the way top corporations are repositioning themselves to become major players in the connectivity industry. The ongoing shift to a digital-first lifestyle and the increasing dependence on fiber optics have paved the way for the growth of the connectivity sector.
The Deal Will Offer Reliable And High-Speed Connection To US Users
President and Chief Executive Officer of Frontier, Nick Jeffery, commented on the acquisition deal. He stated that the company has been setting out an ambitious plan to build and develop the type of digital infrastructure needed in the US. The plan began in 2020, and it’s exciting to see that the company is on the right track.
He added that the acquisition deal is strong evidence that the firm is progressing to develop the best-in-class fiber network. The deal will enable the delivery of high-speed and reliable broadband to millions of clients and customers in the country.
With the increasing digitalization of several industries, it’s now more important than ever to have strong connectivity to survive competition. The next phase of digital transformation is built on 5G and fiber. Jeffery says Verizon has solved a major aspect of the infrastructure puzzle following the acquisition of Frontier.
Chief Executive Officer of Verizon, Hans Vestberg, also commented on the acquisition. “Connectivity is essential in nearly every part of our lives and work,” he said.
Both Firms Want To Connect More Users Across The US
The acquisition will merge Verizon’s fiber and wireless networks with Frontier’s pure-play fiber business. This will expand both businesses and cement the new company as a top layer in the fiber optics industry.
The deal notes that Frontier’s network coverage links users in areas such as California, Texas, and the Midwest while Verizon’s fiber network will connect regions in mid-Atlantic and Northeast.
New data from PYMNTS intelligence reveals that US consumers are involved in an average of 14 different digital activities monthly. They pay for groceries, stream music and videos, watch movies, conduct telehealth visits, and pay bills online. They carry out these transactions with their apps and other digital payment methods.
The acquisition deal Verizon is offering Frontier will provide a faster and wider network connectivity coverage for users across the US.
