The British telecommunications company Vodafone agreed on March to buy the Spanish cable company Ono for about $10 billion. The deal values Ono, which owns high-speed data networks across Spain, at about 7.2 billion euros, including debt.
Vodafone has struggled to compete in Spain with Telefónica, Jazztel and other companies that offer packages combining high-speed home internet, pay-TV and mobile-phone service. Vodafone’s Spanish mobile unit has suffered declining service revenue, contracting margins and high churn levels.
Vodafone said the purchase would allow it to accelerate its growth in Spain by cross selling products and services to each company’s customer base.
In 2013, Ono’s earnings before taxes, depreciation and amortization declined 8.8 percent, to €686 million, from the previous year. The company has about 1.5 million broadband customers and about 1 million mobile telephone customers. Its fiber-optic services are offered to about 7.2 million homes.
“As part of Vodafone, Ono will continue to seize new growth opportunities and deliver the quality that our customers expect,” José María Castellano, Ono’s chairman, said in a statement. “The enlarged business is also expected to drive innovation in the Spanish telecommunications industry.”
Sources: NyTimes, WSJ