Verizon Communications’ $6.25 Billion Acquisition of TracFone Wireless

Cleary Gottlieb represented América Móvil, while Debevoise & Plimpton LLP advised Verizon Communications in the transaction.

América Móvil announced the sale of its wholly owned subsidiary, TracFone Wireless, to Verizon Communications for $6.25 billion in cash and Verizon common stock. América Móvil will also be entitled to up to $650 million of contingent and deferred consideration pursuant to the terms of the transaction agreement. The transaction was announced on September 14, 2020.

TracFone is the largest mobile virtual prepaid service operator in the United States, serving approximately 21 million subscribers.

Verizon is one of the world’s leading providers of technology, communications, information and entertainment products and services.

Credit Suisse acted as financial advisor to Verizon.

The Cleary team is being led by corporate partners Nicolas Grabar and Kyle Harris and corporate associate Paul Imperatore. All lawyers are based in New York.

The Debevoise team is led by M&A partners Michael Diz (Picture), Sue Meng and Jeffrey Rosen and includes M&A associates John Love and James Malmo, finance partner Jeffrey Ross and counsel Katarina Molnarova, benefits partner Lawrence Cagney and associate David Deutsch, tax partners Erin Cleary and Peter Furci and associate Lena Smith, intellectual property partner Henry Lebowitz and associate Jose Angel Lamarque, capital markets partner Steven Slutzky and associate Jonathan Miu, real estate associate Richard Grossmann and antitrust partner Ted Hassiand associate Leah Martin.

Involved fees earner: Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Kyle Harris – Cleary Gottlieb Steen & Hamilton; Paul Imperatore – Cleary Gottlieb Steen & Hamilton; Lawrence Cagney – Debevoise & Plimpton; Erin Cleary – Debevoise & Plimpton; David Deutsch – Debevoise & Plimpton; Michael Diz – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Richard Grossmann – Debevoise & Plimpton; Ted Hassi – Debevoise & Plimpton; Jose Angel Lamarque III – Debevoise & Plimpton; Henry Lebowitz – Debevoise & Plimpton; John Love – Debevoise & Plimpton; James Malmo – Debevoise & Plimpton; Leah Martin – Debevoise & Plimpton; Sue Meng – Debevoise & Plimpton; Jonathan Miu – Debevoise & Plimpton; Katarina Molnarova – Debevoise & Plimpton; Jeffrey Rosen – Debevoise & Plimpton; Jeffrey Ross – Debevoise & Plimpton; Steven Slutzky – Debevoise & Plimpton; Lena Smith – Debevoise & Plimpton;

Law Firms: Cleary Gottlieb Steen & Hamilton; Debevoise & Plimpton;

Clients: América Móvil; Verizon Communications;

Author: Ambrogio Visconti