The deal will enable T-Mobile Austria to better compete with bigger rivals such as A1.
Liberty Global Plc stated it would divest its UPC Austria business to T-Mobile Austria, an unit of
Deutsche Telekom, for a value of $2.25 billion (1.9 billion euros).
As per its statement, Liberty Global will provide certain transitional services for a period of up to four years, mainly network and information technology-related functions, and allow T-Mobile Austria to use the UPC brand for up to three years.
“The combination of UPC Austria and T-Mobile Austria will provide the national scale necessary to compete with larger companies like A1,” said Mike Fries, Liberty Global’s CEO.
According to Liberty Global, the deal is expected to close in the second half of 2018.
Although in the past Vodafone and Liberty Global have held talks to collaborate on their telecom networks and services convergence, their joint venture has so far been limited to only the Netherlands.
LionTree Advisors was the financial adviser to Liberty Global on the deal.