VerizonCommunication Verizon to purchase XO Communications fiber business

 
TIDMVZC 
 
Verizon continues focus on network superiority with agreement to purchase XO 
Communications' fiber business 
 
NEW YORK, Feb. 22, 2016 -- In a move to continue to strengthen the foundation 
of America's best networks, Verizon Communications Inc. (NYSE, Nasdaq: VZ) 
today announced it has signed an agreement to purchase XO Communications' 
fiber-optic network business for approximately $1.8 billion. 
 
Verizon's ownership of XO's fiber-based IP (Internet protocol) and Ethernet 
networks will help better serve enterprise and wholesale customers. In 
addition, acquired fiber facilities will help Verizon continue to densify its 
cell network. 
 
The transaction is subject to customary regulatory approvals and is expected to 
close in the first half of 2017. 
 
Verizon expects to receive several financial benefits from the transaction, 
including a step-up in the basis of the assets as well as operating and capital 
expense savings. The net present value of the operational synergies is expected 
to be in excess of $1.5 billion. 
 
Separately, Verizon will simultaneously lease available XO wireless spectrum, 
with an option to buy XO's entity that holds its spectrum by year-end 2018. 
 
Citigroup Global Markets Inc acted as financial adviser and Debevoise & 
Plimpton LLP acted as legal adviser to Verizon. 
 
Verizon Communications Inc. (NYSE, Nasdaq: VZ) employs a diverse workforce of 
177,700 and generated nearly $132 billion in 2015 revenues. Verizon operates 
America's most reliable wireless network, with more than 112 million retail 
connections nationwide. Headquartered in New York, the company also provides 
communications and entertainment services over America's most advanced 
fiber-optic network, and delivers integrated business solutions to customers 
worldwide. 
 
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Forward-looking statements 
In this communication we have made forward-looking statements. These statements 
are based on our estimates and assumptions and are subject to risks and 
uncertainties. Forward-looking statements include the information concerning 
our possible or assumed future results of operations. Forward-looking 
statements also include those preceded or followed by the words "anticipates," 
"believes," "estimates," "hopes" or similar expressions. For those statements, 
we claim the protection of the safe harbor for forward-looking statements 
contained in the Private Securities Litigation Reform Act of 1995. The 
following important factors, along with those discussed in our filings with the 
Securities and Exchange Commission (the "SEC"), could affect future results and 
could cause those results to differ materially from those expressed in the 
forward-looking statements: adverse conditions in the U.S. and international 
economies; the effects of competition in the markets in which we operate; 
material changes in technology or technology substitution; disruption of our 
key suppliers' provisioning of products or services; changes in the regulatory 
environment in which we operate, including any increase in restrictions on our 
ability to operate our networks; breaches of network or information technology 
security, natural disasters, terrorist attacks or acts of war or significant 
litigation and any resulting financial impact not covered by insurance; our 
high level of indebtedness; an adverse change in the ratings afforded our debt 
securities by nationally accredited ratings organizations or adverse conditions 
in the credit markets affecting the cost, including interest rates, and/or 
availability of further financing; material adverse changes in labor matters, 
including labor negotiations, and any resulting financial and/or operational 
impact; significant increases in benefit plan costs or lower investment returns 
on plan assets; changes in tax laws or treaties, or in their interpretation; 
changes in accounting assumptions that regulatory agencies, including the SEC, 
may require or that result from changes in the accounting rules or their 
application, which could result in an impact on earnings; and the inability to 
implement our business strategies. 
 
Media contact: 
Bob Varettoni 
908.559.6388 
robert.a.varettoni@verizon.com 
 
SOURCE  Verizon 
 
 
 
 
 
 
END

(END) Dow Jones Newswires

February 22, 2016 09:00 ET (14:00 GMT)

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