Verizon Communications Inc. (NYSE:VZ) took over a Colorado-based company ProtectWise Inc. The acquisition allows Verizon to offer cloud-delivered network detection/ response. The stock is trading at $56.96 (up 0.07%). The revenues of Verizon are estimated at $130.9 billion in the year 2018.
Executive Director (Product Management and Development) of Verizon, Alex Schlager said the acquisition of ProtectWise enhances its capability to detect and nullify the security threats. The company is progressing on the 5G front. It is increasing the capabilities and enhances capacities in network detection and prompt response to secure the customers.
Chief Executive Officer and founder of ProtectWise, Scott Chasin said the company put in considerable efforts in the past five years in developing next-generation network detection/ response platform, which is touted as one of the leading technologies in cybersecurity. The CEO said its addition is a great offering to Verizon to enhance its security offerings.
Integration with Verizon helps ProtectWise to serve the teams, partners, and customers using its strong presence worldwide in the security market. Following the takeover, the security of offerings of ProtectWise will be integrated with Verizon.
Verizon pay down debt
Verizon is joining the league of companies like Anheuser-Busch InBev and AT&T in trimming down the debt. It is called a debt diet. The company aims to maintain the unsecured debt between 1.75 and 2 times before EBITDA. Verizon would deserve an upgrade if it could achieve the target.
The company’s unsecured debt is estimated at $103 billion, 2.2 times the adjusted EBITDA from the previous year. According to a strategist of Bank of America, Hans Mikkelsen, the debt of Verizon is huge. The company could gain and deserve an upgrade on meticulously managing the debt. It could easily return to A- rating on mitigating the debt.
Verizon plans to redeem in part or whole of the outstanding notes. It has a set a date of March 29, 2019, to redeem the notes. The redemption price will be equal to 100% of the principal amount, or it could be a total of the values of the balance payments including principal and interest. Verizon is the most reliable wireless network.