Deal will boost enterprise business and offer network savings, says operator
Vodafone has agreed to pay £1.04 billion to buy telecoms provider Cable & Wireless Worldwide (CWW).
The operator said the purchase would strengthen its enterprise business and offer network savings.
Vodafone will be able to use the broadband infrastructure owned by CWW to provide backhaul for its mobile network.
The deal means Vodafone moves from fourth largest telecommunications company in the UK by revenue to second after BT.
Vodafone Group CEO Vittorio Colao (pictured) said: “We are pleased to reach agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer.
“The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.”
CWW chairman John Barton said: “Under the leadership of Gavin Darby, Cable & Wireless Worldwide has outlined a strategy to refocus the business on achieving sustainable cash generation and returns from capital invested.
“However, the offer from Vodafone announced today will enable shareholders to crystallise a value, in cash, that represents a significant premium to recent trading levels and avoid exposure to the risks inevitably presented by executing a medium-term improvement strategy.
“Furthermore, the combination with Vodafone represents an exciting opportunity for Cable & Wireless Worldwide’s customers, employees, partners and other stakeholders to benefit from the many advantages that will come from being part of the Vodafone Group.”