Verizon to buy wireless services provider Tracfone in $6.25 billion deal
INDIA – 2019/08/30: In this photo illustration a popular wireless communication application Verizon logo seen displayed on a smartphone. (Photo Illustration by
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Verizon Communications said Monday it would buy wireless services provider Tracfone, a unit of Mexican telecom America Movil, in a $6.25 billion cash and stock deal.
Several mergers in recent years have led to an increasingly concentrated wireless industry in the U.S., with the bulk of control under Verizon, AT&T and T-Mobile, which recently completed its merger with Sprint. Tracfone is the largest prepaid mobile brand in the United States, with approximately 21 million subscribers and more than 90,000 retail locations, which means Verizon will boost its subscriber base considerably. It also plans to sell 5G to Tracfone customers in the coming years and carriers compete to roll out the faster networks.
The acquisition is expected to close in the second half of 2021 and is subject to regulatory approvals.
The deal will include $3.125 billion in cash and $3.125 billion in Verizon common stock. It also includes up to an additional $650 million in future cash consideration related to the achievement of certain performance measures. Verizon shares were up more than 1% in premarket trading.
Reuters contributed to this report.