Dow 30 component, Verizon Communications, Inc. (VZ) has acquired pre-paid wireless leader Tracfone for $3.125 billion in cash and $3.125 billion in Verizon common stock, subject to customary closing adjustments, as per reports. The agreement also benefits from an additional $650 million in future cash consideration based on certain performance measures and commercial arrangements.
Tracfone’s 21 million subscribers spread over a network of 90,000 retail locations worldwide marks a lucrative deal for Verizon in the wireless market.
“This transaction is aligned with what we do best: providing reliable wireless service alongside a best-in-class customer experience,” “We are excited about the opportunity to bring Tracfone and its brands into the Verizon family where we can put the full support of Verizon behind this business and provide exciting and compelling products into this attractive segment of the market. We are pursuing this important strategic acquisition from a position of strength given our very strong and prudent financial profile.” stated Hans Vestberg, Chairman and CEO of Verizon.
Verizon Communications, Inc. (VZ) is a worldwide leader in delivering communications and technology solutions that improve the lives of its customers. To learn more about Verizon Communications, Inc. (VZ), and to track its progress please visit the Vista Partners Verizon Communications Inc. Coverage Page.
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