Vodafone has announced it has reached an agreement with Cable & Wireless Worldwide (CWW) to purchase the firm for over £1bn in order to boost its infrastructure assets and move into the enterprise services market.
The firm was first reported to be considering a deal in early February and confirmed that it will purchase CWW for 38 pence per share, leading to the £1bn valuation.
Vodafone said the deal would help strengthen its enterprise business offerings and offer "attractive network and other cost saving opportunities" to customers.
The firm also confirmed there would be redundancies in light of the acquisition to reduce duplication of roles.
"There is likely to be a reduction of headcount and places of business where there is administrative or operational overlap although specific individuals and locations have not yet been identified," it said.
Vodafone group chief executive Vittorio Colao boasted the deal would help the firm increase its position in the UK considerably.
"The acquisition of CWW 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," he said.
Ovum analyst David Moloy told V3 the deal would help Vodafone become the number two provider of network services in the UK behind BT, and should help the firm appeal to large enterprises and multi-nationals.
"The main reason this is a significant announcement for Vodafone is that it gives it strong fixed global services assets to complement its mobile offerings so it can offer both services to businesses around the globe," he said.
"This is something many larger firms are looking for as they want to use a single firm to provide all their services."
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