Verizon said Thursday it is buying Frontier Communications in an all-cash deal worth $20 billion as the wireless carrier seeks to boost its fiber network.
Verizon said the acquisition will enable it to expand on its "fiber footprint across the nation," augment its ability to deliver broadband services and expand the company's entrance into AI.
Frontier's 2.2 million fiber subscribers in 25 states will join Verizon's 7.4 million Fios connections in nine states and Washington, D.C., Verizon said in a press release.
Frontier has 7.2 million fiber locations and is committed to build an additional 2.8 stations by the end of 2026.
"The acquisition of Frontier is a strategic fit. It will build on Verizon's two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network," Verizon Chairman and CEO Hans Vestberg said in a statement.
The deal is expected to allow Verizon, which is based in New York City, to compete with AT&T and other carriers by allowing it to carry premium broadband services.
The sale is expected to close in about 18 months and still needs the approval of Frontier shareholders, the Associated Press reported.
Frontier's stock fell about 9% on Thursday. Verizon's climbed slightly, the AP reported.
