Tiscali to merge with Italian operator Aria
Tiscali is to merge with broadband operator Aria, following approval from its board of directors.
The merger will see synergies and savings of approximately €10 million per year as well as enable Tiscali to expand its reach by using Aria’s regional mobile networks, according to the company.
Owned by previous Telecom Italia CEO Riccardo Ruggiero, Aria presently provides fixed mobile LTE services in Italy through its 40MHz spectrum licence on 3.5GHz frequency.
"The transaction shall allow Tiscali to strengthen its industrial and financial position, consolidate its presence in the consumer and business segments in the field of broadband access from landlines and mobile phones and create a single operator on the national market that is able to offer ultra broadband access services all over Italy, thanks to the combination of the two network infrastructures," said the company.
The deal is expected to boost Tiscali’s financial position, enabling it to pay back a debt of approximately €42 million through an agreement with Russian investment fund Otkritie Disciplined Equity Fund (ODEF).
The merger will become effective by the end of 2015.