Vodafone has agreed to acquire Greek fixed-line and broadband operator Hellas Online as part of its ongoing unified communications strategy.
Vodafone Greece agreed to pay €72.7 million for a 72.7% stake in Hellas Online, the telco announced late last week.
It currently holds a stake of 18.4% in Hellas Online, having first invested in the company in 2009. Therefore, on completion of the deal Vodafone will own 91.2% of the broadband provider. It expects to close the deal in the fourth quarter of this year, at which time it will be required to launch a mandatory takeover offer for the remaining shares in the company.
"The transaction creates a leading integrated telecom operator in Greece with the number two market position by revenues in both fixed-line and mobile communications," Vodafone said in a statement.
"The combined company will have the scale, management expertise, products and services and funding needed to compete more effectively in the Greek telecommunications market," it added.
Hellas Online had 519,000 fixed-line telephony and broadband customers in Greece at the end of last year, giving it a market share of 11%, Vodafone claims. In 2013 it posted revenues of €227.4 million and EBITDA of €68.4 million, while capex came in at €36.7 million.
The deal values the company at €311 million, including €211 million of net debt.
Vodafone said it views the management and staff of Hellas Online as "important to the future success of the enlarged company," but made no further comment on leadership or staffing levels going forward.
Completion of the deal is subject to a number of conditions, including the green light from antitrust authorities.