Telecom network operator Telia Company today announced the acquisition of Norwegian Phonero for NOK 2,300 million or nearly $282 million.
The deal will increase Telia’s market share in the mobile enterprise segment from approximately 13 percent to 27 percent. The transaction will strengthen Telia’s position in the Norwegian enterprise segment and expects to generate annual cost synergies of approximately NOK 400 million.
Following significant investments in 4G coverage and capacity across Norway, Telia network covers 98 percent of the Norwegian population.
Phonero offers telecommunication services to small and medium sized corporate customers as well as public companies in Norway. Phonero’s customer base comprises 25,000 invoiced enterprises with approximately 250,000 mobile subscriptions.
During the twelve-month period ending June 30, 2016, Phonero reported net sales of NOK 1,104 million and an adjusted EBITDA of NOK 217 million. Telia expects to realize annual cost synergies of approximately NOK 400 million, mainly from transferring traffic to its own network, with limited effect in 2017 and full effect in 2018.
Based on Phonero’s results in the last twelve-month period combined with expected synergies, the purchase price corresponds to an EV/EBITDA multiple of 3.7x.
“This is another important step in creating a leading converged player in both consumer and enterprise across the Nordics and Baltics,” said Johan Dennelind, president and CEO of Telia Company.
