Scandinavian Tier 1 operator TeliaSonera says it will expand its fiber-optic network holdings through a pair of transactions that will see it acquire three companies for a total price of SEK 473 million ($72.5 million). The cash-only, debt-free transactions with MTG Broadcasting AB and Quadracom AB will see TeliaSonera acquire the communication operator Zitius, network operator Quadracom Networks, and the service provider Riksnet. The operations will become part of TeliaSonera’s Fiber Business unit in Sweden.
TeliaSonera says the new assets will complement its initiative to expand its mobile and fixed infrastructure throughout Sweden, an effort on which the company plans to invest SEK 5 billion ($766.7 million) until 2015. “We are very happy to be able to acquire a group of companies that have a history of being pioneers in open networks, and we aim to use this knowledge and expertise when we continue to invest in open, competition-neutral networks in the future. We welcome our new customers and look forward to serving them with Telia’s entire portfolio,” says Malin Frenning, president of the Broadband Services business area within TeliaSonera.
The Zitius network connects 160,000 households, while open network operator Quadracom Networks asserts it operates a national network that covers 63 municipalities and, through partners, reaches 95% of Sweden's population. Riksnet offers triple-play services to real estate, housing associations and communities. Together, the three firms had net sales totaling approximately SEK 330 million ($50.6 million) pro forma in 2012, TeliaSonera says.
The acquisition is subject to approval from the Swedish Competition Authority.
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