TDC acquires MVNO Onfone

Danish telecoms operator TDC has announced the signing of an agreement to acquire mobile virtual network operator (MVNO) Onfone. The purchase price for the company on a cash and debt free basis is expected to be approximately DKK300 million (USD57.7 million), depending on the final estimate of contingent liabilities. ‘We have been following Onfone closely from the sidelines, but with no plans of acquiring the company. Much to our surprise, we were presented with the prospect of a good deal a few days ago and decided to seize the opportunity,’ commented Henrik Poulsen, TDC’s president and CEO. Under the deal, Onfone’s 170,000 customers will be transferred from the mobile network of Telenor Denmark to that of TDC, although the service provider will continue to operate as a separate company, and prices, terms and conditions will remain unchanged. According to TeleGeography’s GlobalComms Database, Onfone, which was established in 2006 by the current CEO Morten Strunge, joins a number of mobile service providers that have been acquired by TDC in recent years. It took full control of Telmore after paying DKK299 million in January 2004, having bought 20% in April 2003. Telmore itself purchased wireless carrier M1 in December 2009, which at the time had an MVNO customer base of over 100,000, while the same month TDC acquired the remaining 80% in mobile and IP telephony provider UnoTel that it did not already own, having purchased its initial 20% stake in June 2007.