Liberty Global and Virgin Media have agreed a deal whereby the international service provider will acquire the UK’s sole large-scale cable operator.
“Adding Virgin Media to our large and growing European operations is a natural extension of the value creation strategy we’ve been successfully using for over seven years. Virgin Media will add significant scale and a first-class management team in Europe’s largest and most dynamic media and communications market. After the deal, roughly 80% of Liberty Global’s revenue will come from just five attractive and strong countries – the UK, Germany, Belgium, Switzerland and the Netherlands,” said Liberty Global CEO Mike Fries. “Like all of our strategic acquisitions we expect this combination to yield meaningful operating and capex synergies of approximately US$180 million per year upon full integration. But just as importantly, Virgin Media’s market leading innovation and product expertise, particularly in mobile and B2B, will accelerate our own development of these business segments.”
“This deal is good news for the company, its customers and our people. Together, Liberty Global and Virgin Media are in a great position to shake up the industry and bring the full power of digital technology to UK consumers,” said Richard Branson.
More information in Liberty Global’s press release: http://www.lgi.com/pdf/press-release/02-05-Final-Transaction-Announcement.pdf