Sky buys Telef贸nica’s UK broadband and fixed-line telecom business for $300 million

Sky buys Telef贸nica’s UK broadband and fixed-line telecom business for $300 million

Sky has announced聽that it has struck a 拢200 million (approximately $300 million) deal to buy聽Telef贸nica鈥檚 broadband business in a move that sees it become the UK鈥檚 second largest broadband Internet provider. The deal comes hot on the heels of聽US聽cable giant聽Liberty Global buying Virgin Media聽for $23.3 billion last month.

The Telef贸nica-owned O2 business has more than 500,000 customers, who will transition over to the new company as part of the deal. That addition will increase Sky鈥檚 customer base to 4.7 million broadband users in the country. That takes it beyond聽Virgin Media 鈥 and its 4.5 million customers 鈥 but BT continues to lead the market with 6.6 million subscribers.

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In addition to the O2 broadband-fixed telecom business, Sky will also get its hands on聽Telef贸nica鈥檚 ADSL service聽BE.

Jeremy Darroch, Sky鈥檚 Chief Executive, believes that the deal enables the company push on and 鈥渁ccelerate its growth鈥.

鈥淪ky has been the UK鈥檚 fastest-growing broadband and telephony provider since we entered the market six years ago. From a standing start in 2006, we have added more than 4.2 million broadband customers,鈥 Darroch said in a statement.

Ronan Dunne, Chief Executive of Telef贸nica UK, said that the deal is 鈥渢he best way of helping our customers get the highest quality home broadband experience from a leading organisation in the market.鈥

The deal has been agreed with an upfront payment of 拢180 million ($273 million), and a further 拢20 million ($30 million)聽will be paid when the migration and transaction has been concluded. Subject to regulatory clearance, the acquisition is estimated to go through next month.

Headline image via聽BEN STANSALL/Getty Images

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