Money Makers Mentor

Verizon to Acquire América Móvil’s Tracfone

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…

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