Verizon acquires XO's IP and Ethernet networks
$1.8bn acquisition of XO's fibre-based IP and Ethernet networks will be used to serve Verizon's enterprise customers and boost its cell network
Verizon Communications has finalised its $1.8 billion takeover of XO Communications’ fibre-based IP and Ethernet networks business.
The acquisition was first announced in February 2016, with Verizon expecting it to deliver $1.5 billion in synergies from operating ad expense savings.It will use the fibre-based IP and Ethernet networks to better serve its enterprise customers, Verizon said, while also densifying its cell network to help deploy new 5G services.
Verizon has also reached an agreement to lease wireless spectrum from NextLink Wireless, a former affiliate of XO Communications. It also has an option to buy NextLink, exercisable at the end of 2018
Analysis by Allnet Insights & Analytics, disclosed in August, suggests that the spectrum leasing deal will give Verizon 180 billion MHz-POPs across the two frequency bands that it is taking over.
“This transaction with XO will bring significant benefits in how we deliver superior services to our customers,” said John Stratton, Verizon executive vice president and president of operations.
“XO’s fibre network will add ever greater capacity and reach to Verizon’s networks, a combination that will lead to enhanced capabilities, better services and faster rollout of next generation communication networks.”