Vodafone to acquire Spanish next-gen networking company

Ono serves 1.9m customers across Spain and will be sold to Vodafone for €7.2bn

18 March 2014 by Hollie Luxford - DatacenterDynamics

Vodafone to acquire Spanish next-gen networking company
Ono serves 1.9million customers across Spain and will be sold to Vodafone for €7.2bn

Vodafone is set to acquire Spain’s largest next-gen networking company, Grupo Corporativo Ono (Ono) in a €7.2bn deal on a debt and cash-free basis.

Ono serves 1.9m customers across 13 of Spain’s 17 regions.

The company said its network has abundant spare capacity and “future-proof” fiber architecture.

Vodafone said the transaction accelerates its unified communications strategy in a highly converged European market, providing it with a “significant” time-to-market advantage and network reach that will work alongside its ongoing FTTH (Fiber to the Home) program- where its partnership with Orange aims to provide Spanish consumers with world-class fiber to home networks.

Vodafone said it expects to achieve cost and CAPEX synergies with a run-rate of approximately €240m before integration costs by the fourth full year post completion.

The company said it expects to cross-sell its mobile services to Ono’s customers and offer new services, using both companies’ product sets and networks

Vodafone Group’s CEO Vittorio Colao said: “Demand for unified communications products and services has increased significantly over the past few years in Spain.”

Ono’s board of directors chairman José María Castellano Ríos said:As part of Vodafone, Ono will continue to seize new growth opportunities and deliver the quality that our customers expect. The enlarged business is also expected to drive innovation in the Spanish telecommunications industry.”

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