Verizon Communications Inc. (VZ) announced Monday an agreement to buy mobile provider Tracfone from Amercia Movil (AMX.MX) in a cash and stock deal that could be worth up to $6.9 billion. America Movil's U.S.-listed stock was indicated up nearly 4% in premarket trading and Verizon shares gained 1.0%. Under terms of the deal, Verizon will pay $3.125 billion in cash and $3.125 billion worth of its common stock. The deal also includes a potential additional $650 million in cash related to the achievement of certain performance measures. Verizon expects the deal, which is anticipated to close in the second half of 2021, to provide "significant benefits and network synergies," and to added to earnings in the first full year after closing. Verizon said Tracfone is the largest reseller of wireless service in the U.S., as it serves about 21 million subscribers through a network of more than 90,000 retail locations. Verizon's stock has slipped 2.6% year to date through Friday, while the Dow Jones Industrial Average (VZ) has lost 3.1%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 14, 2020 08:13 ET (12:13 GMT)
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