The merger between Verizon Communications Inc. and MCI, Inc. closed Friday, creating a new company with approximately $90 billion in annual revenues and 250,000 employees in some 150 countries.

“This milestone for Verizon creates a new competitive force with the power of the global MCI network and the reach of Verizon’s broadband and wireless networks in the U.S.,” said Verizon chairman and CEO Ivan Seidenberg. “Our added network capabilities and strong customer relationships provide a solid foundation for innovative and integrated wireless, wireline and multimedia services designed to meet customer demands for speed, mobility and control.”

Verizon created a new business unit, Verizon Business, to provide service to large business and government customers. It encompasses the former MCI and Verizon business units which served these customers.

“Our strategy is to be a customer-focused leader in consumer broadband and video, as well as business and government services, in both the landline and wireless environments,” said Seidenberg. “The combination of our world-class wireless and broadband access networks with the leading global IP (Internet protocol) backbone will allow us to deliver the highest quality end-to-end experience for our customers.”

The merger, which was announced Feb. 14, 2005, required regulatory approval from the U.S. government as well as several states and foreign countries. The companies obtained all required approvals as of last month.

Under terms of the merger agreement, MCI shareholders will receive 0.5743 shares of Verizon and cash for each of their MCI shares. Verizon elected to make a supplemental cash payment of $2.738 per MCI share (or $779 million in the aggregate), rather than issue additional shares of Verizon, so that the merger consideration was equal to at least $20.40 per share of MCI. The parties mutually agreed that there would be no purchase price adjustment related to the amount of certain MCI liabilities.

The merger was also structured as a tax-free reorganization, and generally MCI shareholders will be taxed only to the extent of a previously paid special dividend and the supplemental cash payment.

The merged company trades under the symbol VZ on the New York Stock Exchange.