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.
