By James Gorman The tech giant is hoping to raise another $8 billion through its $3.9 billion acquisition of Verizon Communications Inc., according to people familiar with the matter.
The deal includes the purchase of the phone maker’s core cellular services and a stake in its Internet of Things unit.
The financing will be provided by the credit union’s debt and equity portfolio, which includes debt of up to $1.3 billion, the people said, asking not to be identified because the terms of the deal are private.
Verizon, the nation’s largest wireless provider, is expected to provide more details in coming days, but the people spoke on condition of anonymity because the agreement was not publicly announced.
Verizon, the second-largest wireless provider in the U.S., is the world’s third-largest cellphone operator, behind AT&T Inc. and Verizon.
Verzon is the third-biggest U.N. contributor to the U,G.,AID, World Bank, and World Health Organization.
Verizons’ core services include video conferencing, voice calling and online video streaming, according to the people, who asked not to reveal the terms.
Verison is also working on the creation of a new suite of smart home devices, they said.
The company is also developing an app that lets consumers track their energy use and temperature with a simple tap.
The company has a $8.2 billion revolving credit line from Verizon that will help it pay off a $4 billion credit line that it already has in place, the sources said.
Verisat Technologies, a division of Dell, has $6.6 billion in cash and $1 billion in short-term investments, including $1 million in Dell’s cash and another $1,000 in cash tied up in other companies, the company said in a statement.
Veritasat, a provider of personal computing and cloud services, has over 30,000 employees and has a market value of $16.5 billion, according the people familiar.
The value of the Dell-Verizon deal was not disclosed.
Shares of Verizon jumped almost 2 percent in afternoon trading after the deal was announced.
Shares closed higher in early trading in New York and London.
Dell shares rose about 6 percent in after-hours trading.
The move to make a new loan from Verizon is one of the largest in recent years, said Peter Giambrone, senior equity analyst at S&gt’s Digital Credit.
It was a significant and significant deal for Verizon and a new sign of how much the company is looking at the mobile market and how it is trying to compete with Google Inc. on that front, he said.
Verizon is also trying to take the lead in a much-discussed technology race that has been intensifying for the past two years.