Vodafone has finally completed the acquisition of Spanish cable company Ono for EUR7.2 billion (£6bn).
The takeover, which has been rumoured for several weeks now, gives the operator a significant foothold in unified comms in Spain. Ono is the market leader in high speed broadband serving 1.9 million customers in 13 of Spain’s 17 regions.
Vodafone has indicated it will use the acquisition to leverage cross-selling opportunities to the company’s customer base. The British firm estimates revenue synergies of EUR1 billion (£800m) net present value. It’s Vodafone’s first significant acquisition since agreeing to sell its 45% stake back to Verizon Wireless last autumn for $130bn.
Vodafone Group CEO Vittorio Colao (pictured) said: ‘The combination of Vodafone and Ono creates a leading integrated communications provider in Spain and represents an attractive value creation opportunity for Vodafone. Demand for unified communications products and services has increased significantly over the last few years in Spain, and this transaction – together with our fibre-to-the-home build programme – will accelerate our ability to offer best-in-class propositions in the Spanish market. We look forward to welcoming the management and employees of Ono to Vodafone and working together to serve our customers across Spain.’
Ono board of directors chairman Jose Maria Castellano Rios added: ‘This transaction reflects Ono’s attractive position as Spain’s leading provider of high speed broadband, premium pay-TV and fixed communications. As part of Vodafone, Ono will continue to seize new growth opportunities and deliver the quality that our customers expect. The enlarged business is also expected to drive innovation in the Spanish telecommunications industry.’