Finnish full-service telco Elisa Corporation has signed an agreement to acquire the telecoms and IT businesses of fixed network operator Osuuskunta PPO, including 100% of PPO-Yhtiot Oy, and PPO’s ownership stakes in Kymen Puhelin Oy (46%) and Telekarelia Oy (67%). Between them, the target operators have around 70,000 fixed broadband, 54,000 PSTN and 35,000 cable TV subscriptions.
In 2011 the combined revenue of the three fixed network operators PPO, Kymen Puhelin and Telekarelia totalled approximately EUR100 million (USD132 million), of which EUR7 million was ‘household appliance business’, according to Elisa’s press release. Aggregate EBITDA was approximately EUR22 million for the year, whilst the three companies have a combined workforce headcount of 470.
The agreed acquisition price is approximately EUR101 million, including EUR96 million in cash and EUR5 million in Elisa shares (approximately 300,000 shares or 0.2% of Elisa’s share capital). Elisa estimates annual synergy benefits from the merger of EUR10 million will be realised mainly in 2014. It hopes to close the transaction in the first quarter of 2013, subject to the approval of the Finnish competition authorities.