Verizon’s Acquisition of TracFone Wireless Closed

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UPDATE Verizon Communications (NYSE: VZ) said it completed its previously announced acquisition of TracFone Wireless, Inc. and TracFone’s brand family. The announcement came a day after the FCC gave its okay, with numerous consumer protections, Inside Towers reported. Verizon said customers will benefit from more choices and features, including fixed wireless residential broadband solutions, new device technology, expanded 5G access, a continued commitment to Lifeline services and more international calling and roaming options.  

Verizon paid a closing consideration of $3.125 million in cash, subject to customary adjustments, and 57,596,544 shares of Verizon stock. Subject to TracFone continuing to achieve certain operating metrics, Verizon shall pay up to an additional $650 million cash consideration.  

The acquisition, according to Verizon, positions the company as the leading prepaid, value and premium wireless carrier by expanding its portfolio, bringing enhanced access to its wireless network and services to a new customer base. Verizon will continue to offer Lifeline service with new 5G connectivity options–through TracFone and further develop TracFone’s products, distribution channels, and core brands. Those brands include Straight Talk; most of its customers operate on the Verizon network already. Other brands are Total Wireless, TracFone and SafeLink.

The parties say TracFone is the largest reseller of wireless services in the U.S., serving approximately 20 million subscribers through a network of over 90,000 retail locations. A longtime partner of Verizon, more than 13 million TracFone subscribers currently rely on Verizon’s wireless network through an existing wholesale agreement.

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