Finnish operator Elisa has signed an agreement with Polaris Invest to acquire 100% stake in cable TV operator Starman's Estonian business for EUR 151 million. Elisa estimates that the deal will be closed during the first quarter of 2017.
The newly acquired business creates new integrated operator, which enables Elisa to widen its customer base in Estonia and expand the service offering to both Elisa and Starman customers.
Starman is number one in pay TV services and number two in fixed broadband services in Estonia with market shares approximately 35 per cent and 20 per cent, respectively. At the end of Q3 2016, Starman had approximately 122,000 cable TV subscriptions, 88,000 broadband subscriptions, 60,000 digital terrestrial subscriptions and 30,000 telephony subscriptions.
The transaction is aligned with Elisa’s strategy to strengthen its market position in home markets. Annual synergies are estimated to be approximately EUR 4-6 million in 2019. The deal is expected to have a positive impact on earnings per share (EPS) already in 2017, said Elisa.