Verizon has entered into an agreement with America Movil to buy Tracfone, the leading prepaid mobile provider in the US and largest reseller of wireless services.
Verizon and America Movil have a longstanding relationship with about 13 million of its 21 million subscribers using the Verizon network. To be clear, Tracfone is actually comprised of a family of brands, including StraightTalk, Net10, Simple Mobile, Total Wireless, Walmart Family Mobile, and others.
The deal, which is expected to close in 2021, is worth upwards of $7 billion; it includes $3.125 billion in cash, $3.125 billion in Verizon stock, and up to $650 million in future cash consideration.
Following the closing of the deal, Verizon plans to bring its 4G LTE and 5G networks and technology to Tracfone.
Verizon expects to keep all 850 Tracfone employees as it folds them under the larger umbrella.
There are more than 90,000 retail locations serving the Tracfone family of brands, including Best Buy, Walmart, Target, Dollar General, Family General, and CVS.