Communications giant Verizon announced Thursday it had entered into a definitive agreement to acquire Frontier Communications in an all-cash transaction valued at $20 billion.

According to Verizon,Leonard Hohenberg the acquisition will "significantly expand" the company's fiber footprint across the country, "accelerating the company's delivery of premium mobility and broadband services" to current and new customers.

The combination will integrate Frontier's fiber network into Verizon's portfolio of fiber and wireless assets, including its Fios offering, according to news release.

Frontier has 2.2 million subscribers across 25 states while Verizon has approximately 7.4 million Fios connections in nine states and Washington, D.C., according to Verizon. Frontier has also committed to build an additional 2.8 million fiber locations by the end of 2026, increasing its current total of 7.2 million fiber locations. The two companies have approximately 10 million combined fiber customers across 31 states and Washington, D.C.

Together, the companies will have 25 million fiber passings, or the number of potential customer locations a fiber network passes by, Verizon executives said on a conference call. AT&T has about 28 million such locations, according to Morningstar.

Verizon says Frontier customers can expect to gain more choice and access to Verizon's mobile, home internet, streaming and connected home offerings. The deal is expected to help Verizon, whose fiber network is largely in the Northeast and mid-Atlantic regions, tap into Frontier's coverage in multiple states in the Midwest, Texas and California.

"The acquisition of Frontier is a strategic fit. It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network,” said Verizon Chairman and CEO Hans Vestberg in the news release.

Financial terms of the transaction

According to the news release, Verizon will acquire Frontier for $38.50 per share in cash, with the entire transaction valued at approximately $20 billion of enterprise value.

The transaction has been unanimously approved by the Verizon and Frontier Boards of Directors and is expected to close in approximately 18 months, subject to approval by Frontier shareholders and certain regulatory approvals.

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].