Sept. 14 (UPI) — Verizon announced Monday it will buy pre-paid carrier Tracfone for more than $6 billion in cash and stock.
The company said it will pay half in cash and half in common stock. The deal also includes up to $650 million in future cash considerations related to performance and other provisions.
“This transaction is aligned with what we do best: providing reliable wireless service alongside a best-in-class customer experience,” Verizon CEO Hans Vestberg said in a statement.
Experts say the acquisition allows Verizon to grab a larger share of the pre-paid wireless market. The company said it will continue to honor free phone and free monthly minutes for many Tracfone customers.
Tracfone is the largest reseller of wireless services in the United States with about 21 million subscribers and more than 90,000 retail locations.
“When Tracfone’s customers become part of our family, they will get the best of both worlds,” Ronan Dunne, executive vice president of the Verizon Consumer Group, added.