The deal will enable Vodafone to offer fixed-line broadband services to customers in Italy and Spain. Tele2 currently has over 2 million subscribers in Italy and more than 500,000 in Spain.
The operator also revealed that it would not incur any debt through the acquisition, as it will pay for the assets in cash.
Vodafone chief executive Arun Sarin said: "This acquisition is consistent with our strategy of meeting our customers’ total communications needs.
"It will generate substantial time to market benefits in Italy and Spain, where low broadband penetration and the market structure make ownership of fixed broadband assets attractive.
“We have now established a clear route to delivering fixed broadband services in each of our major European markets.”