Tuesday, November 23, 2021

Verizon completes acquisition of TracFone for prepaid customers

 Following regulatory approval from the FCC, Verizon completed its $6 billion acquisition of TracFone, the largest reseller of wireless services in the U.S., serving approximately 20 million subscribers through a network of over 90,000 retail locations nationwide. The deal positions Verizon as the leading pre-paid, value and premium wireless carrier.

Verizon paid  Mexico-based América Móvil a closing consideration of US$3.125 billion 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 US$650 million cash consideration.

Tracfone has been longtime partner of Verizon and there are currently more than 13 million TracFone subscribers on Verizon’s wireless network through an existing wholesale agreement. The remaining Tracfone customers are served by through other carriers.

“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,” said Ronan Dunne, CEO, Verizon Consumer Group. “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,” he added.

“For over 25 years, TracFone Wireless, Inc. has provided wireless solutions to value-conscious consumers,” said Eduardo Diaz Corona, CEO TracFone Wireless, Inc. “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.”