Verizon Communications Inc., New York, announced Tuesday it plans to purchase AOL Inc., New York, for about $4.4 billion in a deal that would add more than $600 million in assets to the telecommunications provider’s defined contribution plans.
Verizon announced in a news release it would pay $50 a share for AOL, which will become a wholly owned subsidiary of Verizon once the merger is closed, expected sometime this summer.
The AOL Savings Plan had $609 million in assets as of Dec. 31, 2013, according to its most recent Form 5500 filing. Verizon had $28.2 billion in total defined contribution plan assets as of Sept. 30, according to Pensions & Investments data. As of that same date, Verizon had $18.5 billion in defined benefit plan assets. AOL does not have a defined benefit plan.
Verizon spokesman Raymond McConville said Verizon is buying AOL and all its assets, and declined to provide further information.