Frontier Communications has received the final regulatory approval needed to close its US$10.54bn acquisition of Verizon‘s wireline, broadband and video operations in California, Florida and Texas. The deal will double the US rural broadband and DTH operator’s size, and includes 1.2 million wireline, 3.7 million voice and 2.2 million broadband connections.
Frontier Communications (NASDAQ:FRTR) has received the final regulatory approval needed to close its US$10.54bn acquisition of Verizon‘s (NYSE:VZ) wireline, broadband and video operations in California, Florida and Texas.
The California Public Utilities Commission (CPUC) unanimously voted to clear the deal yesterday, the US rural broadband and DTH operator said in a statement.
The FCC, Department of Justice and Texas Public Utilities Commission have already given it the green light.
Frontier expects the deal, announced in February, to close at the end of March 2016.
It includes 1.2 million wireline, 3.7 million voice and 2.2 million broadband connections, nearly doubling Frontier’s size.
The telco’s president and CEO Daniel McCarthy said the transaction “represents a significant transformation” for the company.
“We will transition our revenue to a more diversified mix, improve our growth prospects, create sustainable value for shareholders and provide a great experience for our new Frontier customers in California, Florida and Texas.
Frontier executive vice president for external affairs, Kathleen Abernathy, noted that the CPUC process informed settlement negotiations, and provided a forum for input from consumers across the state.
In late September, Frontier issued US$6.6bn of senior unsecured notes to help fund the purchase. It has also inked a US$1.5bn senior secured five-year loan, with JP Morgan as lead-left bookrunner, and raised US$2.75bn in the equity market to help fund the deal.