In a bid to expand its fibre network, the acquisition, expected to close within 18 months, will strengthen the telecom giant’s ability to compete with rivals AT&T and others by enhancing its capacity to deliver high-quality broadband services.
Verizon has offered $38.50 per share, which is 37.3% higher than Frontier's closing price on 3 September, before the acquisition news was reported.
As of June 30, Frontier had $11.25 billion in debt.
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Frontier's shares, which jumped nearly 38% the day before, fell to $35.14 in premarket trading, below Verizon's offer price, while Verizon's stock increased by about 1%, the company revealed.
As a result, the move will merge Frontier's fibre infrastructure into Verizon's portfolio of fibre and wireless assets.
Currently, Verizon’s fibre network primarily covers the Northeast and mid-Atlantic regions, while Frontier’s footprint extends across the Midwest, Texas, California and other areas.
Verizon chairman and CEO, Hans Vestberg said: "Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon.
"Verizon offers more choice, flexibility and value, and we continuously look for ways to provide the best product and network experience to our customers as we bolster our position as the provider of choice."
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