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Verizon Communications Inc. announced a $20 billion deal to acquire Frontier Communications, with the telecommunications giant aiming to expand its fiber network and strengthen its position in emerging technologies like artificial intelligence and the Internet of Things. The transaction, disclosed Thursday, assigns an enterprise value of $20 billion to Frontier and is expected to close in about 18 months.

Verizon $20B Frontier Takeover : Key Legal Advisors Involved

Debevoise & Plimpton LLP is representing Verizon in the deal, while Cravath Swaine & Moore LLP is advising Frontier Communications. Paul Weiss Rifkind Wharton & Garrison LLP provided guidance to the strategic review committee of Frontier’s board, ensuring the deal aligned with the company's long-term goals.

Strategic Expansion of Verizon's Fiber Footprint

Verizon’s CEO, Hans Vestberg, emphasized the strategic fit of the acquisition, noting that the deal would significantly enhance Verizon's fiber capabilities. "The acquisition of Frontier is a strategic fit. 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," Vestberg said.

Verizon is set to acquire Frontier at $38.50 per share in cash, representing a premium of 43.7% compared to Frontier's 90-day volume-weighted average share price as of September 3. This acquisition aims to enhance Verizon's offerings by integrating Frontier’s expanded fiber network, which has been a key driver of Frontier’s revenue growth.

Frontier's Fiber Growth and Confidence in the Deal

Frontier Communications has invested $4.1 billion over the past four years to upgrade and expand its fiber network, now generating over 50% of its revenue from fiber products. Nick Jeffery, CEO of Frontier, stated that the acquisition is a testament to the progress the company has made in delivering reliable, high-speed broadband to millions of customers.

"Today's announcement is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country," Jeffery said. He added that the acquisition would not only benefit shareholders but also create new opportunities for employees and expand access to reliable connectivity for more Americans.

Financial and Legal Teams Overseeing the Deal

The boards of both Verizon and Frontier unanimously approved the deal, which is subject to regulatory approvals, shareholder approval, and other closing conditions. Financial advisers on the transaction include Centerview Partners LLC and Morgan Stanley & Co. LLC for Verizon, and PJT Partners for Frontier’s strategic review committee. Barclays also advised Frontier, with legal teams from Skadden Arps Slate Meagher & Flom LLP representing PJT Partners and Debevoise & Plimpton LLP leading Verizon’s legal team.