Verizon Communications announced plans to buy XO Communications‘ fiber-optic network business for about $1.8 billion. The deal reportedly will include XO’s fiber-based Internet protocol and Ethernet networks that will be used to serve Verizon’s enterprise and wholesale customers.
Verizon expects more than $1.5 billion in cost savings after the deal, the company said on Monday. With the U.S. mobile phone market saturated, Verizon and its rivals are forced to seek growth in other areas. The deal is expected to close in the first half of 2017.
Verizon also said it would simultaneously lease available XO wireless spectrum, with an option to buy it by the end of 2018.