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Tele2 Buys TDC Sweden To Bolster Its B2B Home Market

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Tele2 Buys TDC Sweden To Bolster Its B2B Home Market

In an effort to strengthen its B2B segment in the home market, Tele2 Group (Tele2) is planning to acquire TDC Sweden in a SEK 2.9 billion deal. TDC Sweden is an established player in the B2B service market with a stable record of profitable growth. In 2015, it delivered a net sale of SEK 3.4 billion.

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Tele 2 and TDC Sweden will together focus on sectors of data growth, managed services and migration to cloud platforms. Commenting on the acquisition, Allison Kirkby, President and CEO of Tele2 AB said, “The acquisition of TDC Sweden is consistent with our strategy to be champions of customer value for both consumers and businesses.”

“This deal is a unique opportunity for Tele2 to build scale and expand its range of services in the B2B market, it is hugely complementary to our existing Swedish business, and it allows us to meet the global trend of large B2B customers demanding a wider range of communication & network services. For our shareholders, the combination of Tele2 and TDC Sweden unlocks significant value creation from synergies,” he added.

“The unique complementary profiles of the two companies will enable us to provide our customers with even greater value going forward,” commented Samuel Skott, Executive Vice President, CEO Tele2 Sweden.

According to Tele2, the deal is not conditional on equity financing. The company would carry out a preferential rights issue to existing shareholders totaling about SEK 3 billion to maintain the group’s financial strength. This is subject to the approval of an Extraordinary General Meeting.

The transaction is subject to regulatory approval by the relevant competition authorities. Closing is expected by the fourth quarter 2016.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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