Verizon has entered into an agreement with America Movil to acquire Tracfone, the leading prepaid and value mobile provider in the U.S. With this acquisition, Verizon’s portfolio will expand into the value segment, providing access to its wireless network and comprehensive suite of mobility products and services to a new customer base.
The acquisition of Tracfone aligns with Verizon’s growth strategy. It will provide enhanced services, including fixed wireless residential broadband solutions, 5G access, and expanded international calling and roaming options to more U.S consumers.
The deal will include $3.125 billion in cash and $3.125 billion in Verizon common stock. Tracfone could also receive an additional $650 million in future cash payments based on performance measures. The transaction is subject to receipt of regulatory approvals and other closing conditions. Verizon expects the transaction to close in the second half of 2021.