As part of the company´s continual plans to build and deliver next-generation networks, Verizon Communications Inc. (NYSE, NASDAQ: VZ) announced today it has completed the USD 1.8bn purchase of XO Communications´ fiber-optic network business.
Verizon´s purchase and integration of XO´s fiber network will help the company extend its suite of high-quality network services to its enterprise and wholesale customers. In addition, it will help the company in its plans to densify its cellular network, and to deploy new 5G technologies.
Integration of all XO operations and facilities is expected to commence immediately. The company expects to achieve significant synergies by incorporating XO´s fiber assets as part of its current network operations. Verizon anticipates the transaction will deliver in excess of USD 1.5bn in operating and expense savings in net present value.
In addition to the fiber transaction, Verizon has entered into an agreement to lease certain wireless spectrum from former XO affiliate NextLink Wireless. Verizon has an option, exercisable under certain circumstances, to buy NextLink.
Verizon Communications, headquartered in New York City, has a diverse workforce of 160,900 and generated nearly USD 126bn in 2016 revenues. Verizon operates America´s most reliable wireless network, with 114.2m retail connections nationwide. The company also provides communications and entertainment services over mobile broadband and the nation´s premier all-fiber network, and delivers integrated business solutions to customers worldwide.