(Finance) – Swisscomthe telephone operator that controls Fastweb in Italy, has stipulated binding agreements with the Vodafone Group for the acquisition of 100% of Vodafone Italia to a value of 8 billion euros. The closing is subject to regulatory and other relevant authority approvals, will not require a vote of Swisscom shareholders and is expected to occur in the first quarter of 2025.
NewCo and Vodafone Group will also stipulate transitional and long-term service agreementsincluding a license agreement that allows the use of the trademark Vodafone in Italy for a maximum of 5 years after closing.
Vodafone’s Italian operations were taken over with the aim of integrate it with Fastweb, combining high-quality complementary mobile and fixed infrastructure. The skills and assets of Fastweb and Vodafone Italia – explains a note – will give life to a convergent operator leader in Italy, capable of generating economies of scalea more efficient cost structure and significant synergies, and capable of generating a high value for all stakeholdersto support the investments and to offer innovative converged services at competitive prices, improving performance and experience for customers across all market segments.
With this operation, Swisscom significantly strengthens its presence in Italy, where it has operated successfully since 2007 through Fastweb. In the last ten years Fastweb has recorded a growth of over 50% in terms of customers, revenue and adjusted EBITDA and has established itself as one of the main operators in the Italian market. Vodafone Italia is a quality mobile network operator with a large customer base. By combining Fastweb’s strengths in fixed connectivity with Vodafone Italia’s leadership in mobile services, the NewCo will be able to generate rsignificant benefits for consumers, businesses and the country.
As for the benefits for the mobile customersthere will be one better connectivity and quality of service, thanks to a proprietary network managed end-to-end. Even the customers of the broadband services they will be able to enjoy a better quality of service, thanks to the combination of Fastweb’s proprietary network and Vodafone’s 5G Fixed Wireless Access (FWA). Residential customers in Italy will have access to a combination of high-performance solutions based on fiber and 5G and will therefore benefit from convergent services, improved performance and customer experiences at competitive prices.
Numerous benefits also for business customers (Enterprises)who will be able to enjoy a wider portfolio of high-quality connectivity and ICT services through a single access point, accelerating the digitalisation of businesses and public administration in Italy.
The country will also benefit from this operation, as the NewCo will be more commercially resilient and will therefore be able to guarantee sustained levels of long-term investment in the best fixed and mobile network infrastructures and in innovation, contributing to bridging the digital divide and accelerating digital transformation. The transaction will create an operator with convergent assets and the appropriate size to compete effectively in the market and increase the level of competition in the country. NewCo will also continue to make its high-quality fixed and mobile infrastructure available to third parties for wholesale access services.
“This operation marks a turning point for Fastweb and will generate significant value for all stakeholders. Thanks to the superior quality of mobile and fixed infrastructures, the convergent operator that will result from the operation will be able to offer high-performance connectivity and innovative services to all segments of the market,” he commented Walter RennaCEO of Fastweb.
Christoph AeschlimannCEO of Swisscom, recalled that the Group “has been operating successfully in Italy since the acquisition of Fastweb in 2007. In this period we have generated a solid track record of investments and growth in Italy. The industrial logic of this merger is very solid Fastweb and Vodafone Italia represent an ideal combination to generate high added value for all stakeholders.”