Sweden-based Telia Company has struck a deal to acquire Norwegian operators GET and TDC Norway at an enterprise value of NOK21 billion (USD2.6 billion), on a cash and debt free basis. In a press release, Telia Company said it plans to combine the services offered by its local subsidiary, Telia Norge, with GET’s TV and fixed line services to ‘create a strong challenger on the Norwegian market with converged customer offerings’.
Telia Company has said it expects to generate full run rate synergies of NOK0.6 billion by 2021 from B2C and B2B cross-sales, churn reduction and other cost efficiencies. The acquisition is estimated to incur integration costs during 2019 and 2020 of approximately NOK200 million annually. The deal will be subject to approval from relevant authorities and is expected to be completed in the second half of 2018.