Iliad Group looked to solidify its presence in Poland through a deal to acquire fixed provider UPC Poland from Liberty Global in a deal worth PLN7 billion ($1.8 billion), adding to its acquisition of mobile operator Play in 2020.
The French company stated if the UPC Poland deal is successful, the combined company would become the second-largest telecoms operator in Poland, with combined revenues amounting to €1.96 billion in 2020.
Iliad first approached Liberty Global with an indicative offer at the end of July, and the agreed sum represents a multiple of 9.3-times its 2020 EBITA before synergies.
The deal will be financed through available cash and will be operated under the Play subsidiary.
Illiad added it expects the integration of UPC Poland with Play to support product innovation and investments in fibre networks for B2C and B2B segments, while the operation will serve more than 17 million customers nationwide.
The deal is expected to close in H1 2022 after clearance by the relevant authorities.
Liberty Global stated separately it will generate $600 million of net cash proceeds from the deal after repaying debt.
Iliad CEO Thomas Reynaud commented the company was “determined to invest in next-generation mobile and broadband networks and services”.
“This long-term ambition to foster nationwide connectivity will contribute to the digital transformation of the Polish economy and benefit the consumers and businesses with more innovative and comprehensive offers,” Reynaud added.
Iliad’s move to bolster its Polish presence comes a few months after founder and controlling shareholder Xavier Niel made a €3.1 billion offer to increase its stake in the company and take it private.