Telia is to acquire enterprise communications company Phonero in a bid to boost its operations in Norway.
The NOK 2.3 billion (€250 million) deal for Phonero gives the operator access to 250,000 mobile subscriptions at 25,000 Norwegian SMEs and public companies.
Phonero, which supplies a range of traditional telecoms services, reported net sales of NOK 1.1 billion (€120 million) and an adjusted EBITDA of NOK 217 million (€23.89 million) in the year to June.
Telia said it expects to realise annual cost synergies of approximately NOK 400 million (€44.04 million) over the next two years, mainly from transferring traffic to its own network.
The operator’s Norwegian business saw like-for-like sales decline 1.9 percent to SEK6.5 billion (€650 million) in the nine months to September.
However, EBITDA rose 8.7 percent to SEK2.3 billion (€320 million).
Telia Norway only offers mobile connectivity to subscribers after divesting its fixed-line customer base 12 months ago.
The transaction will increase Telia Norway’s market share in the mobile enterprise segment from approximately 13 percent to 27 percent.
Subject to the approval of the Norwegian competition authorities, Telia said it expects to close the deal in the first quarter of 2017.
Abraham Foss, CEO of Telia Norway, said: “The transaction will strengthen Telia’s position as a true alternative to the incumbent in the Norwegian B2B market.
“We have complementary knowledge, expertise and service solutions that will help to create added value for business customers.
“It will strengthen the competition in the Norwegian B2B market and enables us to create more innovation, better customer journeys and ensure a diversity of services for the benefit of all customers.”