The deal has been a long time coming. Verizon has finally announced today that it has agreed to acquire Vodafone's 45 percent share of the company. It's worth noting that Vodafone helped create Verizon in 1999, when Bell Atlantic agreed to launch a new wireless brand in the U.S.
Don't Miss: Win a FREE Nintendo Switch in our Giveaway
The deal has been "unanimously approved" by the board of directors at Verizon and Vodafone. Under the agreement, Verizon will purchase the shares at $130 billion, with $58.9 billion of the total sum to be paid in cash and $60.1 billion to be paid in the form of Verizon stocks. The remaining 11 billion will be paid through smaller transactions.
Verizon expects the deal to close in Q1 next year, assuming that it passes the regulatory approvals and the approval of shareholders.
The timing is deemed perfect for both companies. For Verizon, in spite of the additional debt due to the deal, this means that the number one carrier in the U.S. will gain 100 percent full ownership of the company. As a wholly owned entity, Verizon will be better equipped in taking on the tough emerging competition.
On the other hand, the deal also means that Vodafone will be leaving its empire in the U.S. But it could also mean opportunity for the British telecom, as it can now invest extra cash on its vast European business.