Vodafone has agreed to buy Spanish broadband and pay-TV firm Ono for 7.2 billion euros ($10 billion), in the latest move by the British group to rebuild its European operations.
The purchase gives Vodafone 1.9 million customers in Spain, complementing its mobile service which will generate savings of about 2 billion euros and potential revenue addition of 1 billion euros, Newbury, England-based Vodafone said today.
Monday’s deal marks Vodafone’s second major acquisition in Europe, after its purchase of Kabel Deutschland last year. Vodafone was attracted by Kabel Deutschland’s extensive cable network, which it could use to expand its fixed-line, broadband and television business.
Ono, which had been in the process of preparing for a stock market flotation, has 1.9 million customers on its network that covers 70 percent of Spain, or 7.2 million households out of a total of 16 million.
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