Wireless Industry News » Verizon closes on $130B Verizon Wireless deal with Vodafone
Verizon Communications announced today that it has closed on its $130 billion acquisition of Vodafone’s 45% stake in Verizon Wireless, giving the domestic telecom giant full control over its leading revenue-generating division.
The deal, which was announced last September, consisted mostly of cash and shares in Verizon, with Verizon forking over $58.9 billion in cash and $60.2 billion in stock. In addition, Verizon issued $5 billion in notes payable to Vodafone; sold its 23% interest in Vodafone Italy for $3.5 billion, thereby providing Vodafone with full ownership of Vodafone Italy; with the remaining $2.5 billion of the transaction value a combination of “other considerations.”
“This is a great day for Verizon,” said Verizon CEO Lowell McAdam. “The new Verizon now has full ownership of the U.S. wireless industry leader in network performance, profitability and cash flow. Acquiring Vodafone’s stake in Verizon Wireless provides us with opportunities for greater financial flexibility, enhanced operational efficiency and innovations that will benefit customers. We are confident it will fuel further growth in our business.” Read the full article