Verizon Communications has confirmed that it has signed a definitive merger agreement under which it will acquire self-styled ‘communications asset company’ Straight Path for USD184.00 per share, reflecting an enterprise value of approximately USD3.1 billion in an all-stock transaction. The transaction has been approved by the boards of directors of both Straight Path and Verizon, and is anticipated to close within nine months, subject to review by the Federal Communications Commission (FCC). Concurrently, Verizon will pay – on behalf of Straight Path – a termination fee of USD38 million to AT&T Inc. The latter tabled a USD95.6 per share (USD1.6 billion) offer on 9 April, only to be outbid three times by a mystery rival – now confirmed to be Verizon.
Virginia-based Straight Path Communications holds a nationwide portfolio of 5G-suitable mmWave spectrum, including 39GHz and 28GHz licences. Confirming the deal, Hans Vestberg, executive vice president and president of global network and technology at Verizon, commented: ‘Verizon now has all of the pieces in place to quickly accelerate the deployment of 5G. Combined with our recent transactions with Corning Incorporated, XO Communications, and Prysmian Group, this is another step to build the next-generation network for our customers.’