Clearing Last Regulatory Hurdle, Frontier Revenue Set to Double After Verizon Deal Closes

Frontier received approval from the California Public Utilities Commission for its acquisition of Verizon territory in that state. This approval was the last remaining regulatory hurdle for the historic acquisition, which is now scheduled to close in March 2016. The deal will dramatically increase Frontier’s size and footprint. The $10 billion transaction takes addressable homes for Frontier to 14.5 million, from 8.5 million at the time the deal was announced in February 2015. Frontier will now serve approximately 4.5 million broadband connections (up from 2.3 million) and 1.8 million video connections (up from 611 thousand). At the time of the transaction, Frontier projected pro-forma revenue post-acquisition would rise to $11.66 billion, from $5.87 billion, essentially doubling annual Frontier revenue. Employee head count will rise to 28,400 from 17,400.