Verizon offers to buy Frontier for $9.6 billion cash to expand fiber network

Verizon has agreed to buy communications provider Frontier Communications in a deal valued at about $20 billion, including $9.6 billion in cash.

The acquisition officially announced Thursday, if approved by Frontier shareholders, is expected to give Verizon additional scale — Frontier has about 2.2 million fiber subscribers in 25 states. Although Verizon offers nationwide wireless service, its fiber network is concentrated mainly in nine states in the Northeast and Mid-Atlantic.

The acquisition “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,” Verizon chief executive Hans Vestberg said in a statement.

The deal is expected to close in 18 months.

Shares of Verizon jumped 1 percent in early trading Thursday, while Frontier fell 9 percent Thursday morning after jumping 34 percent the day before, when the Wall Street Journal reported on a possible deal. Under the terms of the deal Verizon will pay $38.50 for Frontier shares, a 37 percent premium over the company’s Tuesday closing price.

This is a developing story.

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