Verizon last September announced that it has reached an agreement with Vodafone to buyout its 45 percent stake in Verizon Wireless in one of the largest corporate acquisitions in history.
In December, the Big Red carrier won necessary approvals from the Federal Communications Commission and today the company announced that the acquisition has been completed – Verizon now owns 100 percent of the “industry-leading U.S. wireless carrier”…
Vodafone’s 45 percent indirect interest in Verizon Wireless is valued at approximately $130 billion. The transaction is immediately accretive to Verizon’s earnings per share by approximately ten percent, excluding any non-operational adjustments.
Verizon Chairman and CEO, Lowell McAdam:
This is a great day for Verizon. The new Verizon now has full ownership of the U.S. wireless industry leader in network performance, profitability and cash flow.
Acquiring Vodafone’s stake in Verizon Wireless provides us with opportunities for greater financial flexibility, enhanced operational efficiency and innovations that will benefit customers. We are confident it will fuel further growth in our business.
The CEO and Verizon CFO Fran Shammo will share additional details during an investor presentation on Monday, February 24, at 8:30am Eastern time, the first full day of trading for the new Verizon.
Verizon Wireless was founded fourteen years ago, back in 2000, as a joint venture of Verizon Communications and Vodafone. Verizon used to hold 55 percent ownership while Vodafone controlled the remaining 45 percent ownership of the joint venture.
Vodafone, which has its headquarters in London, operates networks in over 30 countries and has partner networks in over 40 additional countries.
Verizon Wireless reported $81 billion in operating revenues in 2013, with operating income margin sitting at around 32.1 percent. The company files as the leading U.S. wireless carriers by subscribers, revenue and profits.