Britain’s Vodafone is continuing its push into Europe’s fixed-broadband market, making its third purchase in two years by snapping up Spain’s Ono. Seven point two billion euros is the ticket price for the private-equity firm, which had been preparing to float on the market before Vodafone stepped in.
“This is a big strategic decision. We’re buying a big company. It’s one of Europe’s best cable networks, and has excellent prospects in the future. It puts us in a great position in our market, clearly the number two in Spain,” said the chairman of Vodafone Spain Francisco Román.
The deal brings nearly two million customers, and nearly half of all Spanish households, into Vodafone’s grasp, which says the purchase will allow it to make savings of 240 million euros within four years, before integration costs are factored in.
Ono, apart from a technological edge from building its own fibre-optic network, has a sound financial footing already, unlike some other 4G competitors.