VODAFONE today announced that it has acquired German cable operator Kabel Deutschland for €7.7bn (£6.6bn).
The British telco said it would pay €84.50 per share in cash, plus a €2.50 dividend.
Sources close to the British firm had confirmed to City A.M. over the weekend that the two companies had reached an agreement.
Kabel Deutschland’s board said it intends to recommend the offer to its shareholders.
By completing the deal, Vodafone will beat European cable giant Liberty Global in a bidding war for the German cable company. Liberty Global – which recently paid $23.3bn (£15.1bn) for UK cable firm Virgin Media – entered the battle for Kabel Deutschland last week with a €7.5bn offer but Vodafone moved swiftly to top the bid.
“The combination of Vodafone Germany and Kabel Deutschland will greatly enhance our offerings in response to those needs and is consistent with Vodafone's broader strategy of providing unified communications services,” said Vodafone Group chief executive Vittorio Colao.
“The transaction will lead to the creation of an operator with significant competitive scale, attractive operating and capital investment efficiencies and a combined management team with expertise across all communications segments and technologies.”
The newly combined entity will have €11.5bn of revenues, 32.4 million mobile customers, five million broadband and 7.6 million direct TV customers in Germany.
Goldman Sachs and UBS are advising Vodafone on the acquisition.