/Verizon will acquire billion 6 billion worth of trackphones

Verizon will acquire billion 6 billion worth of trackphones

Verizon has a big announcement of its own a few months after merging with T-Mobile’s Sprint. Verizon, the country’s largest carrier, announced today that it will acquire the largest MVNO of U.S. trackphones in a 6 6 billion deal.

Trackphone Verizon does not operate its own network as such, but instead uses a price carrier network. There are several MVNOs in the United States, including Google Fi, but Trackphone is still the country’s largest through Net 10 Wireless, Walmart FamilyMobile, Ceflink Wireless, Clearway, Total Wireless, SimpleMobile, StraightTalk and PagePlus.

Verizon actually uses the carrier’s network with about 13 million trackphone subscribers.

Under the new agreement, Verizon Trackphone’s low-income customers will continue to be served with the company’s “Lifeline” service, which provides free phone calls and free talk minutes to eligible customers. StraightTalk’s non-contract plans will also be around.

The portfolio of the Trackphone brand creates a platform for growth and innovation in support of Verizon of quality and low-income segments. Verizon will continue to provide lifeline services through TrackPhone and further develop its core brands, products and distribution channels, including Strattalk, whose customers work extensively on the Verizon network today.

The acquisition of Verizon’s trackphone is worth about 6 6 billion. It consists of $ 3.125 billion in cash and $ 3.125 billion in Verizon general stock. Depending on the trackphone performance could get another 50 650 million. The deal should close somewhat in the second half of 2021.

Verizon for the acquisition of Trackphone

Combining industry-leading standards and premium brands on America’s most reliable network

New York – Verizon (NYSE: VZ) announced today that it has entered into an agreement with America Movil for the acquisition of TrackPhone, a prepaid and valued mobile carrier in the United States. Base mobility wide suite of products and services.

Trackphone is the largest reseller of wireless services in the United States, a longtime partner of Verizon, with more than 13 million Trackphone subscribers relying on Verizon’s wireless network through existing wholesale deals.

Following the acquisition, Verizon hopes to bring its award-winning 4G LTE and 5G networks and other innovative technologies to trackphone customers, further develop trackphone distribution channels and expand trackphone market opportunities.

The acquisition of TrackPhone equates to Verizon’s growth-oriented network as a service strategy, and more U.S. customers are looking for valuable wireless plans with enhanced experience and enhanced service, including fixed wireless residential broadband solutions, 5G access and expanded international calling and roaming options. The portfolio of the Trackphone brand creates a platform for growth and innovation in support of Verizon of quality and low-income segments. Verizon will continue to provide lifeline services via trackphone and further develop its core brands, products and distribution channels, including Stratalk, whose customers operate on the Verizon network today.

“This transaction combines with what we do: provide a top-notch customer experience as well as reliable wireless service,” said Hans Westberg, chairman and CEO of Verizon. “We are excited about the opportunity to bring Trackphone and its brands to the Verizon family where we can fully support Verizon behind this business and deliver attractive and compelling products in this attractive segment of the market. Based on our extremely strong and prudent financial profile, we are striving to achieve this important strategic position from a strong position. “

Ronan Dunn, Executive Vice President and CEO of the group, Verizon Consumer Group, added: “Since the launch of Trackphone, a strong customer brand has developed and established itself as a clear leader in the value mobile segment. This transaction firmly established Verizon through the Trackphone brand.” As a preferred supplier in the quality segment, which complements our explicit leadership in the premium segment. “

“We look forward to welcoming all Trackphone customers and about 850 valued employees of Trackphone. We look forward to expanding our relationship with TrackPhone’s distribution partners and when TrackPhone customers become part of our family, they’ll both get the best in the world – more choices, better service and new features for Verizon’s investment – but flexibility and control that they have with their prepaid plans. Came to the evaluation. Staying connected is more important now than ever before and trackphone customers will benefit from Verizon’s innovations both now and in the future.

The transaction will include $ 3.125 billion in cash and $ 3.125 billion in Verizon common stock, subject to customary adjustment, with some further performance in the agreement at the time of termination, up to 50 650 million related to the acquisition of certain performance measures in future cash consideration and other commercial arrangements.

Verizon expects to drive significant benefits and network integration from the transaction. Verizon expects the transaction to be effective for the first full year, excluding transaction and consolidation costs, and does not expect the transaction to significantly affect costs.

Subject to receipt of transaction regulatory approval and other customary closing conditions. Verizon expects the transaction to close in the second half of 2021.

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