NEW YORK, NY — Verizon is set to purchase Frontier Communications in a $20 billion transaction, strengthening its fiber network capabilities, the company announced Thursday.
The acquisition will enhance Verizon’s infrastructure, particularly in artificial intelligence and the "Internet of Things" sectors, according to a statement from Verizon Communications Inc.
Frontier, which has heavily invested in expanding its fiber network over the past four years, spent $4.1 billion upgrading its infrastructure. As a result, over half of the company’s revenue now comes from fiber products.
Based in Dallas, Frontier boasts 2.2 million fiber subscribers across 25 states. Verizon currently has about 7.4 million Fios connections spread across nine states and Washington, D.C.
The deal, which includes a $38.50 per-share purchase price for Frontier, is expected to close in 18 months pending shareholder approval.
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