06:22 AM EDT, 09/05/2024 (MT Newswires) -- Verizon Communications ( VZ ) said Thursday it has agreed to acquire Frontier Communications Parent ( FYBR ) in an all-cash deal valued at $20 billion.

Under the terms of the deal, Verizon will acquire Frontier Communications for $38.50 per share, representing a 43.7% premium over Frontier's 90-day volume-weighted average share price as of Sept. 3.

The acquisition is expected to be accretive to Verizon's revenue and adjusted EBITDA growth rates upon closing and will drive at least $500 million in cost synergies within three years.

Deal closing is expected in about 18 months, subject to Frontier shareholders' approval, receipt of certain regulatory approvals and other customary closing conditions.

Meanwhile, Verizon reaffirmed its 2024 adjusted EPS guidance of $4.50 to $4.70. Analysts surveyed by Capital IQ expect $4.56.

Shares of Verizon added 0.8% in recent premarket activity, while Frontier declined more than 9%.

Price: 41.79, Change: +0.31, Percent Change: +0.75