The California Public Utilities Commission voted to approve Frontier’s proposed acquisition of Verizon’s wireline, broadband and video operation in California, including the FiOS network.
Frontier has received all other necessary regulatory clearances, including those from the Federal Communications Commission, the U.S. Department of Justice and the Public Utility Commission of Texas, for the $10.54 billion acquisition, which includes Verizon’s wireline, broadband and video operations and FiOS networks in California, Florida and Texas. The transaction is expected to close at the end of March 2016.
Daniel J. McCarthy, President and CEO of Frontier Communications said, “With this final approval, we look forward to completing our transaction with Verizon which represents a significant transformation for Frontier. We will transition our revenue to a more diversified mix, improve our growth prospects, create sustainable value for our shareholders and provide a great experience for our new Frontier customers in California, Florida and Texas.”
Frontier to Acquire Verizon Wireline in CA, FL, TX
Frontier Communications agreed to acquire Verizon’s wireline operations that provide services to residential, commercial and wholesale customers in California, Florida and Texas, for $10.54 billion in cash. The deal requires regulatory approvals.
These Verizon properties include 3.7 million voice connections, 2.2 million broadband connections, and 1.2 million FiOS video connections. The network being acquired is the product of substantial capital investments by Verizon and is 54 percent FiOS enabled. Verizon spent more than $7 billion in the buildout of FiOS in the acquired territories.
“This transaction marks a natural evolution for our company and leverages our proven skills and established track record from previous integrations,” said Maggie Wilderotter, Frontier Communications Chairman and Chief Executive Officer. “These properties are a great fit for Frontier and will strengthen our presence in competitive suburban markets and accelerate our recent market share gains. We look forward to realizing the benefits this transaction will bring to our shareholders, customers and employees.”
