Verizon today announced that it will be strengthening its fiber position with the purchase of XO Communications’ fiber network.
According to a press release, Verizon paid $1.8 billion for the network. As part of the deal, Verizon will also lease XO’s cellular spectrum, with an option to buy XO’s entity that holds its spectrum by year-end 2018.
Verizon says the buy is aimed at better positioning the company to serve enterprise and wholesale customers, while also helping densify its cellular network.
Verizon expects the transaction to close in the first half of 2017.
As to the bottom line, Verizon said the net present value of the operational synergies is expected to be in excess of $1.5 billion.
