Verizon, which services a large portion of New Jersey, on Thursday said it will acquire Frontier Communications for $20 billion.
According to a company news release, the U.S. wireless carrier is looking to boost its fiber network, as the deal combines Frontier’s fiber network into Verizon’s portfolio of fiber and wireless assets, including its Fios offering.
“The acquisition of Frontier is a strategic fit,” Verizon Chairman and CEO Hans 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.”
The acquisition is expected to close in about 18 months.
Verizon offered $38.50 per share, a 37% premium to Frontier’s closing price of $28.04 on Tuesday, before reports of a potential acquisition emerged.
The transaction values the Dallas-based company at $20 billion including debt.
