Vodafone offers $1.68 billion for Cable & Wireless Worldwide

The operator wants to strengthen its enterprise offerings and network holdings

Vodafone has offered to acquire Cable & Wireless Worldwide (CWW) for £1.04 billion (US$1.68 billion), as it aims to strengthen its enterprise offerings and network holdings, the company said Monday.

CWW owns the U.K.'s largest fiber network for business users, and an international cable network spanning approximately 425,000 kilometers, according to its website.

"This will strengthen our enterprise business both in the U.K. and internationally," said Vodafone CEO Vittorio Colao during a conference call presenting the deal. "We are convinced that we are getting interesting assets," he said.

The deal would make Vodafone the operator of the second-largest telecommunications network in the U.K., based on revenue, according to Vodafone. Today, Vodafone operates the fourth-largest U.K. network by revenue.

Vodafone first confirmed its interest in CWW in February. A Vodafone acquisition of CWW makes very good sense, Shaun Collins, CEO at market research company CCS Insight, said at the time. Enterprise and fixed services are Vodafone's growth engines, and buying CWW would help the operator expand its offerings, he said.

Also, CWW has the highest penetration of the business fixed services market in Asia-Pacific of the European and U.S.-owned telecoms service providers, David Molony, principal analyst at Ovum, said via email.

CWW's directors have agreed to recommend the deal, the company said, while according to Vodafone shareholders that own about 18.6 percent of the shares have also agreed to the deal.

Vodafone reserves the right to increase its offer if a another company comes up with a competing bid, it said.

Tata Communications had also showed an interest in acquiring the company, but pulled out last week, according to CWW.

Cable & Wireless Worldwide was created in November 2009 when Cable and Wireless announced its intention to separate its Communications and Worldwide business units. Last year, ex-Vodafone executive Gavin Darby took over as CWW's CEO.

Vodafone expects the deal will be approved during the third quarter.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?