Telia agreed to acquire Denmark-based TDC’s Norway business for NOK21 billion ($2.6 billion), as it looks to position itself as a “strong challenger in mobile, TV and broadband”.
The deal includes Get, a fibre and TV services provider, along with a business-to-business (B2B) unit which, when paired with Telia’s enterprise business, will enable it to offer converged services to B2B customers.
“Telia Company will combine its award-winning mobile network with Get’s supreme TV and fixed services to create a strong challenger on the Norwegian market with converged customer offerings” the operator said in a statement.
Get has 518,000 households and businesses connected to its fibre network, and more than 1 million private and business customers using its TV and broadband services on a daily basis.
The deal “will create a leading convergent operator for both consumers and enterprises in Norway which can compete in the market with a lot of attractive and new products and services…As part of Telia Company, Get will continue to invest in the rollout of broadband and fibre,” said Johan Dennelind, president and CEO of Telia.
In 2017 TDC Norway generated revenue of NOK4 billion. Telia said it expects “to generate full run rate synergies of NOK0.6 billion by 2021 from B2C and B2B cross-sales, churn reduction and other cost efficiencies” while the acquisition is estimated to incur integration costs during 2019 and 2020 of around NOK200 million annually.
The acquisition is subject to regulatory approval and is expected to be completed in the second half of 2018.
Telia is in the process of completing an exit from its Eurasian businesses and previously stated it wants to focus on its core Nordic core markets and expand its TV content.
The company said in May it is in talks to buy Swedish media group Bonnier’s broadcasting business.