Verizon Communications Inc. (VZ) NYSE – Nasdaq to acquire prepaid smart phone company Tracfone.
Track phone has approximately 21 million subscribers making it the largest reseller of wireless services in the United States. 13 million track phones subscribers currently rely on the Verizon wireless network through an existing wholesale agreement. Verizon will bring its 4G LTE and five G networks to track phone customers . The deal makes sense for Verizon allowing it to expand TracFone’s marketing opportunities.
Ronan Dunne, Executive Vice President and Group CEO, Verizon Consumer Group added: “Since its launch, Tracfone has developed strong consumer brands and has established itself as a clear leader in the value mobile segment. This transaction firmly establishes Verizon, through the Tracfone brands, as the provider of choice in the value segment, which complements our clear leadership in the premium segment.”
“We’re looking forward to welcoming all of Tracfone’s customers and each of Tracfone’s nearly 850 valuable employees. We are excited to expand our relationship with Tracfone’s distribution partners, and when Tracfone’s customers become part of our family, they will get the best of both worlds – more choices, better services, and new features thanks to Verizon’s investment–but with the flexibility and control that they have come to value with its prepaid plans. Being connected is now more important than ever, and Tracfone customers will benefit from Verizon’s innovations–both now and in the future,” he added. Source Verizon