On Monday Sept. 14, Verizon Communications Inc. (VZ) announced that they had entered into an agreement with América Móvil (AMXL.MX) to acquire TracFone.
Details of the Deal
The deal is a cash and stock deal, worth $6.25 billion. The consideration for the deal will consist of $3.125 billion in cash and $3.125 billion in Verizon common stock. The deal also includes “an additional $650 million in future cash consideration related to the achievement of certain performance measures.”
Tracfone, which is owned by Mexico-based América Móvil, is the largest seller of wireless service in the U.S. The company offers prepaid, no-contract mobile phone service and currently serves 21 million customers nationwide. Tracfone’s parent company América Móvil is Mexico’s largest telecommunications co…