Summary by Moomoo AI
On September 4, 2024, Verizon Communications Inc. announced a definitive agreement to acquire Frontier Communications Parent, Inc. in an all-cash transaction valued at $20 billion. The deal, expected to close in approximately 18 months, is subject to approval by Frontier shareholders and regulatory approvals. Verizon will purchase Frontier for $38.50 per share, a 43.7% premium over Frontier's 90-day volume-weighted average share price as of September 3, 2024. This acquisition will significantly expand Verizon's fiber footprint, adding 2.2 million fiber subscribers from Frontier and extending its network reach to 25 million premises across 31 states and Washington, D.C. The transaction is anticipated to be accretive to Verizon's revenue and Adjusted EBITDA growth rates upon closing and is projected to generate at least $500 million in annual run-rate cost synergies by year three. Verizon reaffirmed its full-year 2024 guidance, including total wireless service revenue growth of 2.0 to 3.5 percent and Adjusted EPS of $4.50 to $4.70. The acquisition aligns with Verizon's strategy to grow and strengthen customer relationships and expand its share of the nationwide broadband market.