By Dominic Chopping
STOCKHOLM--Nordic telecommunications company Telia Company AB (TELIA.SK) has bought Norway's Phonero for an enterprise value of 2.3 billion Norwegian kroner ($281.3 million), in a move that will bolster the Sweden-based operator's share of corporate customers.
Phonero offers telecommunication services to small and medium-sized corporate customers and has a customer base of 25,000 invoiced enterprises with 250,000 mobile subscriptions. The deal will see Telia's market share within mobile enterprise rise from 13% to 27%, it said.
"The transaction will strengthen Telia's position as a true alternative to the incumbent in the Norwegian B2B market," said Abraham Foss, chief executive of Telia's Norwegian operation. "It will strengthen the competition in the Norwegian B2B market and enables us to create more innovation, better customer journeys and ensure a diversity of services."
In the 12 months to June 30, 2016, Phonero reported net sales of NOK1.1 billion and adjusted earnings before interest, taxes, depreciation and amortisation of NOK217 million. Telia said it expects to realize annual cost savings of NOK400 million, mainly from transferring traffic to its own network, with limited effect in 2017 and full effect in 2018.
The acquisition is expected to complete in the first quarter of 2017 and is subject to approval from the Norwegian competition authorities.
-Write to Dominic Chopping at email@example.com; Twitter: @domchopping @WSJNordics
(END) Dow Jones Newswires
November 07, 2016 02:16 ET (07:16 GMT)
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