Vodafone has successfully agreed to buy Kabel Deutschland, Germany's largest cable operator, for €7.7 billion (£6.6 billion).
The deal improves Vodafone's revenue in Germany, increasing its customer base to 32.4 million mobile users, 5 million broadband users, and 7.6 million TV subscribers. 8.5 million customers come from Kabel Deutschland alone.
The agreed payment boils down to €87 (£74) per share, according to The Scotsman. This is a little higher than the €81-82 (£68-69) Vodafone was initially offering.
Earlier this month Vodafone confirmed its interest in Kabel Deutschland, offering roughly £6 billion, but the German firm apparently rejected the offer as too low. The subsequent negotiations netted it a further £600 million and avoided a potential bidding war with rival cable company Liberty Global.
“German consumer and business demand for fast broadband and data services continues to grow substantially as customers increasingly access TV, fixed and mobile broadband services from multiple devices in the home and workplace and on the move,” said Vittorio Colao, CEO of Vodafone.
“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.”
The deal still needs to meet shareholder and regulator approval.