Verizon Communications Inc. VZ has inked an agreement to acquire certain assets of Bluegrass Cellular, a wireless service provider in rural Kentucky. The financial terms of the deal were not disclosed. The acquisition, subject to FCC approval, is expected to close late this year or in early 2021.
Bluegrass Cellular reportedly launched the first wireless company in central Kentucky back in 1991. The firm serves 210,000 customers in 34 counties in rural service areas 3, 4 and 5 in central Kentucky. The acquisition will help expand Verizon’s footprint in Kentucky with complementary assets.
Verizon intends to provide Bluegrass Cellular’s customers with reliable wireless service along with excellent experience. The companies have been associated with each other for several years. In 2012, Bluegrass Cellular launched LTE service in Kentucky as part of Verizon’s LTE in Rural America program. As part of that, Verizon leased some of its spectra in rural locations.
Bluegrass Cellular’s customers do not need to take any action. They will receive information about services from Verizon, including wireless data services delivered on a 4G high-speed wireless broadband network.
In September, Verizon announced that it was buying TracFone Wireless, Inc. — a subsidiary of Mexico’s largest telecommunications company, America Movil AMX. Headquartered in Miami, FL, TracFone is a leading prepaid and value mobile provider in the United States, offering products and services under several brands. The buyout will expand Verizon’s portfolio into the value segment while complementing its leadership in the premium segment.
Shares of Verizon have inched up 0.9% in the past six months compared with 5.7% growth of the industry.
Verizon carries a Zacks Rank #3 (Hold), at present.
A couple of better-ranked stocks in the broader industry are Corning Incorporated GLW and Ooma, Inc. OOMA, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.
Ooma delivered a trailing four-quarter positive earnings surprise of 238.9%, on average.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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