Tele2 Group announced that it will acquire TDC Sweden at an enterprise value of SEK 2.9 billion(USD$351million) to become a stronger player in the strategically important B2B segment in its home market.
TDC Sweden is a highly successful provider of B2B services in Sweden, serving both the public sector and many Swedish blue chip customers on their entire end-to-end connectivity and communication needs.
Together, TDC Sweden and Tele2 will be offering a more comprehensive product portfolio to Swedish business customers. The combined operations will be well positioned to capture growth in data, managed services and migration to cloud platforms, said both companies.
Tele2 estimates annualized run rate of OPEX and CAPEX synergies from the acquisition to amount to approximately SEK 300 million, with additional one-off capex synergies estimated at SEK 200 million. Positive effects of cross-selling are also expected. Preliminary estimates for the integration costs and other one-off costs required to achieve synergies amount to approximately SEK 750 million, added Tele2.