Telia Company has agreed to acquire Norwegian Phonero at an enterprise value of NOK 2,300 million ($USD337 million) for the sale of 100% of its shares.
The transaction is expected to strengthen Telia’s position in the Norwegian B2B/enterprise segment and expects to generate 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
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. The transaction will increase Telia’s market share in the mobile enterprise segment from approximately 13 percent to 27 percent.
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. 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.
Following a successful rebranding in early 2016, Telia continues to develop and improve its services to the Norwegian customers.