Monday, February 22, 2016

Verizon to Acquire XO's Fiber Business for $1.8 Billion

Verizon Communications has agreed to acquire XO Communications’ fiber-optic network business for approximately $1.8 billion.

Verizon cited several financial benefits from the transaction, including a step-up in the basis of the assets as well as operating and capital expense savings. The net present value of the operational synergies is expected to be in excess of $1.5 billion.


Separately, Verizon will simultaneously lease available XO wireless spectrum, with an option to buy XO’s entity that holds its spectrum by year-end 2018.

Carl C. Icahn, the Chairman and Sole Shareholder of XO Holdings, stated "Although this sale to Verizon does not represent a significant annualized return on our investment, we believe that in today’s environment it does represent the best achievable outcome for the company’s customers, employees and owner.”

http://www.xo.com/verizon-acquires-xo/
http://www.xo.com/why/the-right-network/assets/

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