Telenor swoops for Tele2 consumer fibre and cable business
Editor | 24-10-2013
Scandinavian comms giant Telenor is spreading its wings even further in the region with the acquisition of Sweden’s Tele2 in a deal worth a cash sum of SEK775 million.
Telenor believes the buyout, subject to customary approval of the Swedish Competition Authority, will contribute significantly to strengthen its position as one of the leading providers of fixed broadband and TV. Under the terms of the deal, Telenor will acquire Tele2′s entire fibre and cable business, and all of the 68 employees will be transferred to Telenor. New customers of the acquired company will gain access to its services through Telenor’s Internet provider Bredbandsbolaget, one of Sweden’s largest suppliers of fixed broadband.
The Swedish mobile, broadband, telephony and cable TV provider’s last financial report showed that it had a turnover of approximately SEK530 million in 2012. The acquisition includes a portfolio of about 37,000 households passed with a connection to fibre and cable (Coax), of which 125,000 are fixed broadband customers; 75,000 digital TV customers; and approximately 220,000 households with cable television.
“In today’s society, access to high capacity broadband plays a very central role for most people. Telenor aims to provide optimal connectivity and we want to continue our commitment on fixed broadband and TV through our brand Bredbandsbolaget. This topic is priority for us and our new customers and employees will play a vital role in our business going forward,” said Lars-Ĺke Norling, CEO of Telenor Sweden.