Vodafone to buy Cable & Wireless for £1bn
Vodafone has agreed to buy troubled telecoms company Cable & Wireless Worldwide (CWW) in a deal valued at £1.04bn.
Vitorrio Colao: chief executive of Vodafone group
Vodafone is carrying out the acquisition to strengthen its enterprise business in the UK and abroad by expanding its network and creating cost-saving opportunities.
CWW provides high-speed telecoms services to companies including Tesco and the police.
It marks an attractive proposition for Vodafone, as the telecoms company moves to grow its corporate business at a time of weak consumer growth.
CWW's fibre cable network is expected to relieve pressure on Vodafone's mobile network, while the latter's enterprise business will gain a boost because CWW already has contracts providing voice, data and hosting services to government departments and companies, including Tesco.
Cable & Wireless directors will unanimously recommend that shareholders vote in favour of the takeover.
Vitorrio Colao, chief executive of Vodafone group, said: "The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."
Vodafone has beaten off a rival approach from Tata Communications, the India-based telecoms company.
Follow Matthew Chapman at @mattchapmanUK
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- PR Account Manager fishtank 24k to 33k per year GBP, Surrey
- Brand Manager Radisson Blu Edwardian, London Competitive , South Kensington, London
- Junior Account Manager fishtank 22k to 28k per year GBP, Buckinghamshire
- senior planner > SPORTS BRANDS collectivo Up to £90,000 plus benefits, London
- Head of Media, Marketing & Communications PGA Competitive, Sutton Coldfield, West Midlands
- Graphic/Web Designer fishtank 27k to 35k per year GBP, United Kingdom
Integrated digital marketing offers huge opportunities to engage, servic...
Mobile marketing is coming of age, and the pace of change is now exponen...
With UK consumers spending an average of £1,083 a year online, int...
Conversational Mobile Marketing: Engage Customers and Empower Advocates (Expert Reports) External website
The pressure is on for marketers and mobile operators to embrace a strat...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...