AT&t and Verizon have struck a deal to buy rival automotive financial services company Autonomy Finance.
The deal, which is subject to regulatory approval, would be the first of its kind between two major US carriers, and would be worth $2.7 billion.
Autonomy has been in the spotlight recently because of its business model.
In October, the Federal Trade Commission charged the company with deceptive practices, which led to its merger with rival Bank of America.
In September, the US government accused the company of engaging in deceptive marketing of its products and services.
AT&ts acquisition of Autonomy would give it a more aggressive presence in the financial services market.
ATO spokesperson, Krista Breen said in a statement, “The agreement between AT&Ts acquisition of the company and Verizon Wireless will strengthen the strength of the AT&TC portfolio of financial services and provide the American people more choices, including on mobile, on the AT &T network, and on the Verizon network.”
AT&TS would become a majority owner of Autonomous.
ATG said in the statement, the acquisition is the result of years of investment by the two companies in building and expanding their combined services and the resulting synergies.
AT &ts move to buy Autonomy will come as the carrier moves forward with plans to merge its voice and video services with Verizon.
Verizon has been struggling with a high number of complaints about its wireless customer experience, which have forced the carrier to launch a $3 billion investment in voice over LTE (VoLTE) in late October.
Autonomous has been working on VoLTE for years, but it hasn’t been fully deployed in markets where AT&s wireless service has been offered.
The new agreement with AT&TT will help speed up the deployment of VoLTC technology, according to the companies statement.
Autonomys first product, which would provide AT&tg customers with a secure and reliable mobile financial solution, would have been available in the US in 2018.
However, that will no longer be the case as the company has been exploring other markets.
ATTR’s acquisition of AT&tds automotive financial service is expected to close in the fourth quarter of 2021, the company said in its statement.
The transaction is subject, among other things, to regulatory review and approval.