- The transaction is estimated to be accretive to Frontier’s adjusted free cash flow per share in the first year.
- The transaction is estimated to improve Frontier’s dividend payout ratio by more than 5 percentage points in the first year.
- The all-cash transaction means Frontier shareholders will receive the benefit of increased diversification of assets and operations without any dilution in ownership.
- Frontier will have greater scale to leverage its network, information technology, engineering, administrative services and procurement capabilities to realize cost synergies and savings of $200 million annually once integration is complete.
- Frontier will implement its proven local engagement community-oriented go-to-market strategy in Connecticut led by local General Managers and a State Leader.
- Connecticut customers will have the same products and services that they currently enjoy, including the U-verse suite of products.
Frontier Communications Corporation (NASDAQ:FTR) announced today that it has entered into a definitive agreement with AT&T, Inc. (NYSE:T) to acquire AT&T’s wireline business and statewide fiber network that provides services to residential, commercial and wholesale customers in Connecticut. As part of the transaction, Frontier will also acquire AT&T’s U-verse video and satellite TV customers in Connecticut. Frontier will pay AT&T $2 billion in cash for the business and related assets. Frontier’s extensive experience operating local and national communications networks and providing communications services to residential and commercial customers throughout the country will contribute to the success of this transaction. Frontier’s shareholders, customers, local communities and employees will benefit substantially as a result of this transaction: