Verizon announced US $6.25 billion acquisition of tracfone, a Latin American wireless service provider


Verizon communications, the largest U.S. mobile operator, announced today that it would buy wireless service provider tracfone for $6.25 billion in cash and stock.
The $6.25 billion includes $3.125 billion in cash and $3.125 billion in Verizon common stock. In addition, Verizon will pay an additional $650 million in cash if certain performance indicators are met in the future.
Tracfone, a division of America Movil, the largest mobile operator in Latin America, is the largest prepaid mobile brand in the United States, with about 21 million subscribers and more than 90000 retail outlets.
This means Verizon will greatly expand its subscriber base. Verizon also plans to sell 5g services to tracfone users in the next few years.
In recent years, the U.S. mobile service market has experienced several integrations, resulting in an increasing concentration of the wireless industry, most of which are controlled by Verizon, at & T and T-Mobile.
The deal is subject to regulatory approval and is expected to be completed in the second half of 2021.