Dutch operator KPN struck a deal to buy the local operations of MVNO and broadband provider Youfone for €200 million, a move it expects to improve its position in the value segment.

The MVNO uses KPN as its host network in The Netherlands and has more than 540,000 customers across its mobile and fixed products in the country, the operator noted in its statement.

Explaining the rationale for the acquisition, KPN noted the buy “materially strengthens its position in the mobile and broadband markets, especially in the faster-growing no-frills segments”.

Youfone sells SIM-only deals and a range of packages comprising TV and broadband services, primarily to the consumer segment. It also operates in Belgium, though this part of the business is not included in the proposed buyout.

KPN pledged the brand will operate independently with the “efficient” model in-place at the MVNO set to be left intact.

It will be added to the operator’s list of sub-brands which includes Simyo, Solcon and XS4ALL.

The deal is subject to regulatory approval.