Verizon Communications Inc. said today that it has acquired fiber optic networking company Frontier Communications Parent Inc. in an all-cash deal valued at $20 billion.

The Wall Street Journal initially reported the upcoming deal on Wednesday, which the two companies confirmed today. According to the agreement, Verizon is set to purchase Frontier for $38.50 per share in cash.

“The acquisition of Frontier is a strategic fit,” said Verizon Chairman and Chief Executive Hans Vestberg. “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.”

Frontier provides internet, phone and TV services to customers across urban, suburban and rural communities with a coverage area concentrated in the Midwest and Eastern United States. Originally based in Florida, the company provides best-in-class fiber networks and has invested more than $4.1 billion in upgrading and expanding its fiber network and products. The company now reaches more than 2.2 million subscribers across 25 states.

Fiber optic cable is a type of network cable that contains many strands of glass fibers inside an insulated casing. It guides beams of light over long distances for high-speed, high-bandwidth data networking and telecommunications. Compared with wired cables, such as copper, fiber optic cable provides massively superior bandwidth over much longer distances and helps support current best standards for internet, cable and telephone. That makes it the go-to choice for people who want to watch high-definition TV, play video games without latency and enjoy everything at high speed.

Verizon already has a sprawling fiber network crossing 9 states and Washington DC that includes 7.4 million connections. The company said it is committed to expanding that network further with an additional 2.8 million fiber locations by the end of 2026.

This deal will help Verizon compete with its rival AT&T Inc., which has been continually expanding its fiber network across the U.S. This included adding 170,000 more access points in California through the end of 2023. AT&T reportedly has about 8.5 million fiber customers. Combined with Frontier’s fiber network, Verizon will boost its reach to about 9.4 million.

“Less than four years ago, we set out an ambitious plan to Build Gigabit America, the digital infrastructure this country needs to thrive for generations to come,” said Frontier CEO Nick Jeffery. “Today’s announcement is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country.”

Having met the approval by both Verizon and Frontier boards, the deal is expected to close in about 18 months subject to approval by shareholders and regulatory conditions.

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