TeliaSonera snaps up NextGenTel

17 May 2006

Swedish telecoms group TeliaSonera has struck a deal to acquire Norway’s second largest DSL provider, Bergen-based NextGenTel. TeliaSonera said in a statement that it had acquired 82.3% of the shares in the company for about NOK1.54 billion (USD253.7 million), and will now present a public offer to the remaining shareholders to buy out their investments at an equal price of NOK65.5 per share, a 45% premium on NextGenTel’s Monday closing price.

According to TeleGeography’s GlobalComms database, NextGenTel launched operations in the business sector in March 2000. It now offers both residential and corporate ADSL/SHDSL services via its own infrastructure and through wholesale agreements with Telenor. Operating from offices in Bergen, Oslo, Trondheim, Stavanger and Kristiansand, by the end of December 2005 it accounted for 15% of the country’s broadband subscribers. At the start of 2006 NextGenTel expanded its coverage by acquiring power utility Agder Energi’s ADSL network and customer base on the southern coast of Norway (under the LOS brand name). Under the deal, it took control of around 10,000 residential broadband customers and ADSL infrastructure spanning 72 local exchange offices (LEOs).