Telio acquires NextGenTel and becomes a leading player in the Norwegian broadband market

On 19 December 2012, Telio Holding ASA (“Telio”) and TeliaSonera Norge Holding AB (“TS”) signed an agreement whereby Telio shall acquire TS’ wholly owned subsidiary NextGenTel AS (“NGT”) (the “Acquisition”). Through the Acquisition, Telio will become the number three provider of fixed broadband in the Norwegian market and the number two provider of xDSL broadband.

The Norwegian telecom market is undergoing rapid changes driven by technological developments and altered communication patters between people. These changes require swift adaptation by the providers of telecommunication services. Telio has held a leading position within VoIP services for a number of years in the Norwegian market and has recently expanded its product offering to include related services, including mobile and broadband services (through an agreement with NGT). The Acquisition will not only secure Telio in-house capabilities and delivery of such broadband services, but also significantly expand Telio’s customer base. The combined entity will thus have substantial potential for cross-selling of services to the combined company’s customer portfolio. Furthermore, the combined entity will have significant potential for realizing scale benefits and more cost effective operations.

“This acquisition represents a step-change for Telio as we more than double our size and significantly broaden our product offering in our core Norwegian market” comments Eirik Lunde, Telio’s CEO. “We know NGT well since it already provides broadband services to a number of our customers. A combined Telio and NGT will have the potential to become a highly efficient, cost effective and customer-oriented telecom player. We look forward to welcoming the NGT team to the Telio Group.”

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