Verizon Communications has outbid rival AT&T in the $3 billion race to acquire Straight Path Communications.
Verizon said that it has signed an agreement to acquire all Straight Path shares for $184 each in an all-stock transaction, giving the company an enterprise value of $3.1 billion.
The definitive agreement, announced Thursday, means that Verizon was successful in outbidding AT&T for Straight Path, a company with 39-GHz and 28 GHz millimeter wave spectrum that has increased in value as it becomes prime real estate for new 5G services.
Under the new deal, Verizon will pay on behalf of Straight Path a break-up fee of $38 million to AT&T. The boards of Verizon and Straight Path have signed off on the deal.
AT&T originally put in a bid of $95.63 per share, or an enterprise value of $1.6 billion.
"Verizon now has all of the pieces in place to quickly accelerate the deployment of 5G," said Hans Vestberg, president of global network and technology at Verizon.
"Combined with our recent transactions with Corning, XO Communications, and Prysmian Group, this is another step to build the next-generation network for our customers.”
Last month, AT&T announced plans to acquire Straight Path to complement its January acquisition of FiberTower, and augments the company’s holdings of mmWave spectrum.