Verizon wraps up $6.9bn acquisition of wireless provider Tracfone Wireless
Verizon has wrapped up its previously announced $6.9 billion acquisition of US-based prepaid wireless provider Tracfone Wireless.
The US-based telecom conglomerate had acquired Tracfone Wireless from Mexican telecommunications corporation America Movil. Verizon acquisition of Tracfone was announced in late 2020.
The consideration includes an amount of up to $650 million to be paid based on the meeting of certain performance measures and other commercial arrangements.
Tracfone Wireless is among the largest resellers of wireless services in the US. The prepaid wireless provider caters to nearly 20 million subscribers via a network of more than 90,000 retail locations across the US.
Eduardo Diaz Corona — CEO of TracFone Wireless said: “For over 25 years, TracFone Wireless, Inc. has provided wireless solutions to value-conscious consumers.
“With the power of Verizon, we will be able to bring innovative offerings and better value to market quicker, allowing us to further our purpose to deliver Coverage & Access For All.”
As a long time partner of Verizon, Tracfone Wireless’ more than 13 million subscribers presently depend on the former’s wireless network under an existing wholesale agreement.
Ronan Dunne — CEO of Verizon Consumer Group said: “We’re thrilled to welcome TracFone and its employees to the Verizon family and look forward to bringing new products and enhanced services to this attractive segment of the market. Our new premium and value customer base will benefit from the combined organization’s offerings—now and in the future.
“The addition of the TracFone brands firmly establishes Verizon as the provider of choice in the value segment, which complements our clear leadership in the premium segment.”