Nordic operator TDC has sold its Finnish business to domestic provider DNA in a deal worth around €154 million ($212 million), bringing an end to the Danish operator's direct presence in the country beyond TDC's fibre-based transmission network called the European Ring.
TDC said it will continue to provide solutions for pan-Nordic business customers and international wholesale customers in Finland in co-operation with DNA.
"Our main focus has been to ensure the best possible service for our pan-Nordic business customers and international wholesale customers, which is exactly what this agreement does. At the same time, our local Finnish customers will remain in safe hands," said Asger Hattel, senior EVP of TDC Nordic & Wholesale.
DNA will take over TDC Finland and TDC Hosting and their Finnish customers, thus strengthening its position in the country's corporate market. TDC Finland provides data, mobile, fixed voice and hosting services to consumer and business customers across the country. It generated revenue of DKK698 million (€93 million/$129 million) in 2013.
The transaction is subject to approval from Finnish competition authorities, which is expected in the second quarter of this year. The two parties said they have agreed on a 24-month transition period to ensure a smooth handover for customers.
DNA is Finland's third-largest telecoms provider and the country's largest cable TV provider. In 2013, DNA recorded turnover of €766 million and an operating profit of €44 million. DNA has more than 3 million mobile and fixed network customers.
TDC CEO Carsten Dilling said late last year that the Nordic market was ripe for consolidation amid growing competitive pressures across a number of markets including Sweden, Norway and Finland.
For more:
- see this TDC release
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