Verizon (VZ) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands fiber footprint to 25 million premises across 31 states and D.C., accelerating premium broadband and mobility services and uniting premium broadband and mobile offerings.

• Strategic fit aligns with long-term strategy to grow connections, customer value, and maximize ROI, while deepening customer relationships and expanding addressable markets.

• Combines Frontier's broadband with Verizon's mobile, enhancing product differentiation and loyalty, and bringing a high-quality customer base.

• Enables more choice, flexibility, and value for customers, reinforcing provider of choice status.

Financial terms and conditions

• All-cash transaction valued at $20 billion, or $38.50 per share, a 43.7% premium to Frontier's 90-day VWAP.

• Verizon will refinance Frontier's existing debt and inherit its net operating tax losses.

• Expected to be accretive to revenue and adjusted EBITDA at close, and to EPS by 2027.

• Modest increase in net unsecured debt to adjusted EBITDA ratio by 0.2x–0.3x at closing.

• Verizon will maintain capital allocation priorities, including continued debt reduction and an industry-leading dividend.

Synergies and expected cost savings

• At least $500 million in run-rate operating cost synergies expected by year three, driven by network integration, contract savings, and customer experience improvements.

• Revenue opportunities from mobile and home convergence, including cross-selling.

• No CapEx synergies included in the $500 million figure; only OpEx.