Verizon Communications’ $6.25 Billion Acquisition of TracFone Wireless

Cleary Gottlieb represented América Móvil, while Debevoise & Plimpton LLP, Jones Day and Von Wobeser y Sierra advised Verizon Communications in the transaction. Willkie represented América Móvil.

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.

América Móvil is the leading provider of integrated telecommunications services in Latin America. The company’s platform offers customers a portfolio of value-added services and communications solutions in 25 countries in Latina America, the U.S. and Central and Eastern Europe.

The transaction was completed on November 23, 2021.

Credit Suisse acted as financial advisor to Verizon.

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

The Debevoise team was 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.

Jones Day advised Verizon with a team including J. Bruce McDonald, Dehmeh Smith and Jesús Gabriel Altamirano.

In Mexico, Von Wobeser y Sierra advised Verizon with Luis Burgueño, Fernando Moreno Gómez de Parada and Santiago Barraza López.

The Willkie team was led by partner Maria-Leticia Ossa Daza, partner Daniel Alvarez and counsel Mia Hayes, and included associates Brenna Sparks and Sophia Galleher.

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; Jesús Gabriel Altamirano – Jones Day; Bruce McDonald – Jones Day; Dehmeh Smith – Jones Day; Santiago Barraza – Von Wobeser y Sierra SC; Luis Burgueño – Von Wobeser y Sierra SC; Fernando Moreno – Von Wobeser y Sierra SC; Daniel Alvarez – Willkie Farr & Gallagher; Sophia Galleher – Willkie Farr & Gallagher; Mia Guizzetti Hayes – Willkie Farr & Gallagher; Maria-Leticia Ossa Daza – Willkie Farr & Gallagher; Brenna Sparks – Willkie Farr & Gallagher;

Law Firms: Cleary Gottlieb Steen & Hamilton; Debevoise & Plimpton; Jones Day; Von Wobeser y Sierra SC; Willkie Farr & Gallagher;

Clients: América Móvil; Verizon Communications;