Verizon To Acquire Tracfone From America Movil In $6.25 Bln Cash, Stock Deal – Quick Facts

Verizon Communications Inc. (VZ) announced Monday that it has entered into an agreement with Mexican telecom company America Movil SAB de CV to acquire TracFone Wireless, Inc., the leading pre-paid and value mobile provider in the U.S., in a cash and stock deal valued at $6.25 billion.

This includes $3.125 billion in cash and $3.125 billion in Verizon common stock, subject to customary adjustments, at closing. It also includes up to an additional $650 million in future cash consideration on achieving certain performance measures and other commercial arrangements.

Tracfone is the largest reseller of wireless services in the US, serving approximately 21 million subscribers through a network of over 90,000 retail locations nationwide. It is a longtime partner of Verizon, with more than 13 million Tracfone subscribers currently relying on Verizon’s wireless network through an existing wholesale agreement.

The acquisition will expand Verizon’s portfolio into the value segment, bringing enhanced access to its industry-leading wireless network and comprehensive suite of mobility products and services to a new customer base.

Following the acquisition, Verizon expects to bring its award-winning 4G LTE and 5G networks and other innovative technologies to Tracfone customers, further develop Tracfone’s distribution channels, and expand Tracfone’s market opportunities.

Verizon expects to drive significant benefits and network synergies from the transaction. It expects the transaction to be accretive in the first full year following closing, excluding transaction and integration costs, and does not expect the transaction to materially impact capital expenditures.

The transaction, subject to receipt of regulatory approvals and other customary closing conditions, is expected to close in the second half of 2021.

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