Verizon to acquire prepaid mobile provider Tracfone2020-09-15 18:22 by Daniela
Tags: Verizon, TracFone
Verizon on Monday said it has agreed to acquire prepaid mobile carrier Tracfone in a deal worth up to nearly $7 billion in cash and stock.
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. A longtime partner of Verizon, more than 13 million Tracfone subscribers currently rely on Verizon's wireless network through an existing wholesale agreement.
After the sale is completed, "all TracFone customers will have access" to the Verizon network, a Verizon fact sheet on the deal said. Verizon could try to shift existing TracFone customers to Verizon plans, as Verizon said the deal will bring "enhanced access to its industry-leading wireless network and comprehensive suite of mobility products and services to a new customer base."
The deal will include $3.125 billion of cash and $3.125 billion in Verizon common stock. Tracfone could also receive an additional $650 million cash payment tied to performance measures. Pending regulatory approvals, the acquisition is expected to close in the second half of 2021.
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