Telenor says it has reached agreement with electrical utility Agder Energi to acquire the fiber companies LOS Bynett AS and Bynett Privat AS for NOK 300 million. Telenor Norway will use the companies to further its expansion into fiber-based broadband services delivery.
LOS Bynett builds fibre-optic networks for the corporate market and the public sector, while Bynett Privat supplies private households. Combined, the two companies have 9,600 private customers and approximately 900 corporate customers. The companies had revenues of NOK 89 million in 2010, Telenor reports. The corporate customer base accounted for almost 50 percent of this revenue.
All 23 employees in Vestfold and the Agder counties will keep their jobs, Telenor says.
“Telenor's aim is to further develop these enterprises as part of Telenor's fixed broadband activities in Norway. We have great faith in the region comprising the Agder counties and Vestfold, and Telenor has already established a regional office in Kristiansand and a security center in Arendal. The strong local business community, population growth, and strong purchasing power make this an attractive region,” says Ragnar Kårhus, CEO of Telenor Norway.
“LOS Bynett and Bynett Privat will carry on with the same management and range of services as today. In a more long-term perspective we will consider integration of the companies with our other businesses and services,” Kårhus concludes.
The acquisition is contingent on approval from the Norwegian Competition Authority.