Bredband2 and A3 to combine in Swedish fibre market

14 Sep 2020

Swedish ISP Bredband2 has made a buyout offer for rival operator A3, which has a total bid value of SEK621.7 million (USD70.7 million). A3 shareholders representing 71.7% of the company’s shares and votes have already accepted the offer. Each share in A3 will be worth eight new shares in Bredband2 plus SEK6 in cash. The combined business will have more than 450,000 fibre customers, equivalent to around 15% of Sweden’s fixed broadband segment, with pro forma revenues of SEK1.5 billion in 2019 and EBITDA of SEK148 million.

Daniel Krook, CEO of Bredband2, said: ‘This takes Bredband2 to a whole new level and we are forming a much stronger player in the market. Instead of competing on price, we can focus all our energy on gaining new market shares. The timing is just right and the merger really feels like a perfect match for both companies.’

Following the completion of the transaction, which is expected by the end of the year, existing Bredband2 shareholders will control 72.7% of the enlarged company, while A3 shareholders will own the remaining 27.3%.

Sweden, A3 (incl. AllTele and T3), Bredband2