BT finalises terms of EE acquisition
DetailsJoseph O'Halloran | 05 February 2015
Completing a drawn-out negotiation process, BT has finally agreed definitive terms to acquire fellow UK telco EE for £12.5 billion.
EE TV - Tablet 2The UK's leading telco announced in December 2014 that it would make a dramatic return to the mobile business and was confident that buying the Orange/T-Mobile joint venture would enable it its to accelerate its existing mobility strategy whereby customers would benefit from services that combine fibre broadband, Wi-Fi, plus what it claims will be the UK's most advanced 4G network. EE currently has 31 million customers in the UK of which 24.5 million are users of mobile services and 834,000 from fixed broadband.
Post acquisition, BT expects to generate revenue synergies by providing a full range of communications services to the combined customer base. This includes BT selling its broadband, fixed telephony and pay-TV services to those EE customers who do not currently take a service from BT. BT also expects to accelerate the sale of converged fixed-mobile services to BT's existing consumer and business customers and offer new services, using both companies' product portfolios, skills and networks. In all, BT expects to generate revenue synergies with a total net present value of approximately £1.6 billion.
"This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them," commented BT chief executive Gavin Patterson. "The UK's leading 4G network will now dovetail with the UK's biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation."