On Thursday, Verizon, a major player in the communications industry, declared it has finalized an agreement to acquire Frontier Communications in a cash-only deal worth $20 billion.

According to Verizon, this purchase will “substantially enhance” its fiber network nationwide, enabling the quicker provision of top-quality mobile and broadband services to both existing and new customers.

The merger will amalgamate Frontier’s fiber infrastructure with Verizon’s array of fiber and wireless services, which includes the Fios brand, as stated in their press release.

Frontier serves around 2.2 million customers across 25 states, while Verizon has around 7.4 million Fios subscribers in nine states and Washington, D.C. Additionally, Frontier aims to expand its network to add 2.8 million more fiber locations by the end of 2026, raising its total to 7.2 million. When combined, these two companies will reach nearly 10 million fiber customers distributed across 31 states and Washington, D.C.

Once the acquisition is complete, Verizon will cover about 25 million potential customer sites with its fiber network, compared to AT&T, which has around 28 million, according to Morningstar.

Verizon assures that Frontier’s existing customers will have better options and access to its offerings in mobile, home internet, streaming, and smart home technologies. This deal is expected to help Verizon, which primarily has its fiber presence in the Northeast and mid-Atlantic, to expand in regions including the Midwest, Texas, and California thanks to Frontier’s widespread coverage.

“Acquiring Frontier strategically aligns with our vision. It strengthens Verizon’s long-standing leadership in fiber and provides us a chance to be more competitive in a broader array of markets across the U.S., allowing us to offer exceptional services to millions more customers with a unified fiber network,” stated Hans Vestberg, Verizon’s Chairman and CEO, in the press release.

Transaction Financial Details

According to the press release, Verizon will purchase Frontier at $38.50 per share in cash, resulting in a total enterprise value of roughly $20 billion.

This transaction has received unanimous approval from both Verizon and Frontier Boards of Directors and is projected to finalize within about 18 months, pending approval from Frontier’s shareholders and relevant regulatory bodies.

Gabe Hauari is a national trending news reporter at YSL News. Follow him on X @GabeHauari