Swisscom Completes Vodafone Italia Acquisition in Landmark Merger
Deal News | Jan 06, 2025 | EIN
Swisscom has finalized its acquisition of Vodafone Italia, effective December 31, 2024, after receiving all necessary regulatory approvals. The merger combines Vodafone Italia with Swisscom's Italian subsidiary, Fastweb, creating a new brand, Fastweb + Vodafone. The merged entity aims to achieve annual synergies of approximately $619.5 million by combining Fastweb's fixed-line expertise with Vodafone Italia's mobile capabilities. Walter Renna will lead the new entity as CEO, while Christoph Aeschlimann, CEO of Swisscom, highlighted the acquisition's potential for value creation in Italy and commitment to Swiss operations. The integration involves transitioning Fastweb's customers to Vodafone's network and poses costs of up to 200 million CHF. Swisscom's 2024 EBITDA guidance has been updated to CHF 4.3-4.4 billion, the acquisition cost was EUR 8 billion on a debt and cash-free basis, and ongoing integration aims to unlock stakeholder value through enhanced synergies and services.
Sectors
- Telecommunications
- Mergers and Acquisitions
Geography
- Italy – The acquisition takes place in the Italian telecommunications market and involves Vodafone Italia.
- Switzerland – Swisscom, a Swiss carrier, is the acquiring company, highlighting the involvement of a Swiss entity in the transaction.
Industry
- Telecommunications – The acquisition and merger involve telecommunications companies, focusing on combining mobile and fixed-line services in the Italian market.
- Mergers and Acquisitions – The article details a significant corporate acquisition and merger between Swisscom and Vodafone Italia, emphasizing strategic value and synergy creation.
Financials
- EUR 8 billion – The acquisition cost for Vodafone Italia on a debt and cash-free basis.
- CHF 4.3-4.4 billion – Revised 2024 EBITDA guidance for Swisscom post-acquisition.
- 600 million ($619.5 million) – Expected annual synergies from the merger.
- Up to 200 million CHF – Integration costs incurred by Swisscom for the transition of mobile customers.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Swisscom | Bidding Company | Company | Swiss telecommunications company acquiring Vodafone Italia and merging it with Fastweb. |
| Vodafone Italia | Target Company | Company | The Italian subsidiary of Vodafone Group, acquired by Swisscom. |
| Fastweb | Company involved in merger | Company | Swisscom's Italian subsidiary that is merging with Vodafone Italia. |
| Walter Renna | CEO of Fastweb + Vodafone | Person | CEO leading the newly formed entity Fastweb + Vodafone. |
| Christoph Aeschlimann | CEO of Swisscom | Person | Swisscom CEO overseeing the acquisition and integration strategy. |
| Vodafone Group | Selling Company | Company | Parent company of Vodafone Italia that sold its Italian operations to Swisscom. |