GlobalConnect Sweden has announced an agreement with Telenor Sweden to acquire communications operator Open Universe and Telenor Sweden's single dwelling unit (SDU) fibre assets for SEK 3 billion. It covers approximately 200,000 connected homes on Open Universe's platform and 14,000 connected homes on Telenor's SDU fibre infrastructure. Telenor Sweden expects the transaction to yield a pre-tax profit of SEK 1.7 billion, adding that the relevant assists accounted for EBITDA of approximately SEK 240 million in FY 2020.
Telenor Sweden said the deal will enable it to concentrate on providing mobile, broadband and television services to end-users. It will still supply services via the Open Universe wholesale platform, and conditions of service for customers will not change.
GlobalConnect Sweden said it will keep developing Open Universe's "robust" platform, retaining the brand name and operating model. It said it is committed to maintaining a "strong" collaboration with municipalities, property owners and city networks.
With more resources and dedicated focus, GlobalConnect’s ambition, it says, is to deliver more, and improved fibre-based broadband services to residences throughout Sweden. The detached home (SDU) fibre infrastructure will be incorporated into its FTTH operations, enabling expansion and densification in the areas where the network is deployed. GlobalConnect Sweden said this will enable it to offer future-proof fibre-based broadband to homes that previously have not had the opportunity.
GlobalConnect said the group’s strategy is to expand via acquisitions as well as organically, as it seeks to become "the leading provider of digital infrastructure and connectivity across Northern Europe". Group CEO Martin Lippert said GlobalConnect regards market consolidation as a "natural development" in the sector, and will continue to explore possible acquisitions in all its markets
The transaction is subject to competition regulation approval. GlobalConnect said the deal is expected to be finalised in Q1 2022. Telenor Sweden said it should be concluded at the beginning of the year.
GlobalConnect Group operates a 93,600-km fibre network and 30,000 m2 of data centre space in Denmark, Norway, Sweden, Germany and Finland. It employs approximately 1,700 people, has 30,000 B2B customers and connects more than 380,000 private residences with fibre. GlobalConnect Group resulted from the 2019 and 2020 mergers of Broadnet, GlobalConnect and IP-Only. It is owned by investment organisation EQT.
