It’s official: after a large amount of speculation, which even included a recent report from The Wall Street Journal, Verizon has confirmed its intention to purchase Vodafone’s 45 percent share in the “most reliable” U.S. iPhone carrier Verizon Wireless.
From what we understand, the $130 billion deal is expected to be completed by 2014. As Verizon explains in a press release published earlier today:
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced that it has entered into a definitive agreement with Vodafone Group Plc (London, Nasdaq: VOD) to acquire Vodafone’s U.S. group with the principal asset of 45 percent of Verizon Wireless for $130 billion, consisting primarily of cash and stock. Verizon expects the transaction at close to be immediately accretive to the company’s EPS (earnings per share) by approximately 10 percent, without any one-time adjustments.
The transaction was unanimously approved by the boards of directors of Verizon and Vodafone, and is subject to customary closing conditions, including regulatory approvals and the approval of both companies’ shareholders. The transaction is expected to close in the first quarter of 2014.
As explained in our previous article, the acquisition is indeed set to be made in both cash and shares – however, we now know that some $58.9 billion of the $130 billion purchase will be cash.
Lowell McAdam, Verizon’s chief executive officer, said: “This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers. We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets.”
Here’s hoping the move indeed allows Verizon to further improve the service it offers consumers in the long run.
We’ll keep you updated with further information as we receive it.
In the meantime, see: Quickly Manage And Share Lists With Silo, JUICES+ Offers iDevice Owners Tangle-Free, Woven Cables For Just $20, and Wake Up With An Information Hub Every Morning With Now Alarm Clock.