Verizon on Monday said it has agreed to acquire prepaid mobile carrier Tracfone in a deal worth up to nearly $7 billion in cash and stock. Tracfone, part of America Movil, is one of the largest resellers of mobile service in the US, with approximately 21 million subscribers and over 90,000 retail locations, according to Verizon.
Tracfone, similar to many other prepaid brands, offers service across the US and runs on other carriers' networks for a fee. Verizon said more than 13 million Tracfone subscribers already rely on its network.
"This transaction is aligned with what we do best: providing reliable wireless service alongside a best-in-class customer experience," said Verizon CEO and Chairman Hans Vestberg in a release.
Verizon said the deal will include $3.125 billion in cash and $3.125 billion in Verizon shares, as well as the possibility of an additional $650 million in cash tied to performance measures and other commercial arrangements. The deal is expected to close in the second half of 2021.