Verizon Communications closes TracFone Wireless takeover

24 Nov 2021

Verizon Communications has completed its previously announced acquisition of TracFone Wireless, and TracFone’s family of brands, from America Movil (AM). TracFone is the largest MVNO in the US, serving approximately 20 million subscribers via a network of over 90,000 retail locations nationwide. A long-time partner of Verizon, more than 13 million TracFone subscribers currently rely on Verizon’s wireless network through an existing wholesale agreement.

TracFone Wireless currently operates via the following brands: TracFone, NET10, Straight Talk, Total Wireless, Simple Mobile, Page Plus Cellular, Walmart Family Mobile and B2B-focused Clearway Wireless. Additionally, the long-running SafeLink brand is part of the government-subsidised Lifeline programme.

Verizon paid a closing consideration of USD3.125 billion in cash, subject to customary adjustments, and 57,596,544 shares of Verizon stock. Subject to TracFone continuing to achieve certain operating metrics, Verizon shall pay up to an additional USD650 million cash consideration.

Eduardo Diaz Corona, CEO TracFone Wireless, commented: ‘For over 25 years, TracFone Wireless has provided wireless solutions to value-conscious consumers. With the power of Verizon, we will be able to bring innovative offerings and better value to market quicker, allowing us to further our purpose to deliver coverage and access for all.’