Verizon Communications has completed the $6.9 billion acquisition of TracFone Wireless from America Movil.
TracFone has 20 million customers and generated $8.1 billion revenue in 2019. Verizon Communications is the #1 wireless operator in the US. FCC on Monday announced the approval for the deal with certain conditions.
Verizon said it will continue to offer Lifeline service — with 5G connectivity options — via TracFone and further develop TracFone’s products, distribution channels, and core brands. Those brands include Straight Talk, the vast majority of whose customers operate on the Verizon network as well as Total Wireless, Tracfone and SafeLink.
TracFone is the largest reseller of wireless services, serving approximately 20 million subscribers through a network of over 90,000 retail locations. More than 13 million TracFone subscribers currently rely on Verizon’s wireless network through an existing wholesale agreement.
“Our new premium and value customer base will benefit from the combined organization’s offerings,” said Ronan Dunne, CEO, Verizon Consumer Group. “The addition of the TracFone brands establishes Verizon as the provider of choice in the value segment, which complements our clear leadership in the premium segment.”
Verizon paid a closing consideration of US$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 will pay up to an additional US$650 million in cash.
