The Frontier Building sits near the boundary between Minden and Gardnerville on Thursday morning.
Photo by Kurt Hildebrand.
Just over 14 years after Frontier Communications acquired Verizon’s assets in Carson Valley, the two companies announced they’ve entered into an agreement for Verizon to acquire Frontier in an all-cash transaction valued at $20 billion.
“This strategic acquisition of the largest pure-play fiber internet provider in the U.S. will significantly expand Verizon's fiber footprint across the nation, accelerating the company’s delivery of premium mobility and broadband services to current and new customers,” company officials said in a release issued on Thursday.
Under the terms of the agreement, Verizon will acquire Frontier for $38.50 per share in cash, representing a premium of 43.7 percent to Frontier’s 90-Day volume-weighted average share price on Sept. 3, the last trading day prior to media reports regarding a potential acquisition of Frontier. The transaction is valued at approximately $20 billion of enterprise value.
The transaction has been unanimously approved by the Verizon and Frontier Boards of Directors. The transaction is expected to close in approximately 18 months, subject to approval by Frontier shareholders, receipt of certain regulatory approvals and other customary closing conditions.
Frontier completed its purchase of Verizon on July 8, 2010. Prior to Verizon, the phone company was ConTel, which was shortened from Continental Telephone. In 1994, GTE purchased ConTel. GTE was itself purchased by Bell Atlantic in 2000 and changed its name to Verizon.
Carson Valley was served by the United Farmers Telephone and Telegraph Co. from 1911 to 1946, when it was purchased by Interstate Telegraph Co.
Eight years later in 1954, local service was provided by California Interstate Telephone Co, which built the red brick building located near the border of Minden and Gardnerville in 1965. That was the year that the ConTel purchased the company.
