French MVNO Virgin Mobile France's parent company, Omer Telecom, has agreed to acquire rival MVNO Tele2 France from Sweden's Tele2 for approximately SEK 575 million (EUR 56 million) in cash on a debt-free basis. By integrating Tele2 France's 385,000 customers, Omer Telecom strengthens its position as the country's biggest MVNO with 1.6 million customers, including Virgin Mobile France and smaller MVNO Breizh Telecom. Omer Telecom's 48.5 percent shareholder Carphone Warehouse (along with Virgin Group) said the move would allow Virgin Mobile France to reduce its operating costs by strengthening its relationship with network operators and will drive major economies of scale. Omer Telecom aims to have over 2 million customers and to become profitable in 2010. Tele2 said that its French unit contributed SEK 55 million of EBITDA and SEK 637 million of operating revenues in the first half. The transaction will result in a goodwill impairment loss of around SEK 526 million in the third quarter. The acquisition is subject to the approval of French anti-trust authorities.
