NextGenTel agrees to sell Kvantel to Broadnet for NOK 250 mln

Nieuws Algemeen Noorwegen 27 APR 2018
NextGenTel agrees to sell Kvantel to Broadnet for NOK 250 mln

NextGenTel Holding said that it has agreed to sell its datacom provider Kvantel to Broadnet for NOK 250 million, even though it has a growth strategy for the corporate market. Kvantel generated NOK 210.6 million in revenues in 2017. It said Broadnet made it an attractive offer that will provide NextGenTel with significant liquidity, increasing its flexibility both financially and strategically in a changing telecoms market.

NextGenTel said it is still well positioned to deliver internet, datacom and other communication services to the business market through its subsidiary Proximo Norge. Proximo has a "good" position in the SMB market with revenue of NOK 270 million in 2017 and "good" profitability, said NextGenTel

The sale is expected to have a marginal impact on the operational cash flow of the NextGenTel group. Kvantel’s datacom and telephony services will both transfer to Broadnet. The platform and related employees producing the voice services for NextGenTel is not a part of the transaction.

The transaction is subject to approval by the Norwegian competition authorities and is expected to be finalized at the end of May 2018.

Broadnet said the acquisition will boost its status as the leading data communications provider in the Norwegian corporate market. Broadnet CEO Martin Lippert said it is a good fit for its profile, and that the deal underlines its intention to continue investing in Norway’s telecoms market. He said Kvantel customers will benefit from a broader range of products through Broadnet’s nationwide infrastructure.

Categories:

Algemeen

Companies:

NextGenTel,  Broadnet

Countries:

Noorwegen

Tags:

Voice services, Data services, Internet Access, Enterprise, M&A buyouts & divestments

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