Elisa to acquire telecoms and IT businesses of Osuuskunta PPO

Finnish telco Elisa is to acquire the telecoms and IT businesses of fixed network operator Osuuskunta PPO for €101 million.

The transaction includes 100% of PPO-Yhtiot Oy, and PPO’s 46% stake in Kymen Puhelin Oy and 67% stake in Telekarelia Oy.

The operators boast 70,000 fixed broadband, 54,000 PSTN and 35,000 cable TV subscriptions with a total workforce of 470.

The deal will also grant Elisa mobile network masts and a fibre backbone network complementary to its existing infrastructure.

Total revenue for the three operators stood at €100 million in 2011 with EBITDA standing at approximately €22 million.

Elisa said that synergies of €10 million are expected to be achieved through the acquisition by the end of 2014.

The transaction is expected to close in the first quarter of 2013, subject to regulatory approval.