Liberty Global said it has completed its Dutch joint venture with European wireless company Vodafone Group.
Liberty Global first announced the deal in February. The transaction, a 50-50 joint venture valued at $29.2 billion, combines Vodafone’s wireless communications assets in the country with LGI’s video, broadband and business services.
The JV will operate under both the Vodafone and Ziggo brands and will create a nationwide integrated communications provider with over 15 million revenue generating units – 4.2 million video, 3.2 million broadband, 2.6 million fixed line telephony and 5.3 million mobile customers.
“Vodafone/Ziggo will be the most innovative provider of converged communications services in the Netherlands with a full suite of market-leading TV, broadband, fixed-line and mobile products on day one of the JV,” Liberty Global CEP Mike Fries said in a statement. “We are also excited for our shareholders. This is a highly accretive transaction with significant synergies and a predictable dividend stream.”
For the 12 months ended Sept. 30, Liberty Global predicted the JV would have generated more than 4 billion euros ($5 billion) in revenue.
“Today marks the creation of a strong integrated communications provider in the Netherlands, combining the complementary skills and experience of Vodafone and Liberty to bring a range of benefits to consumers, enterprises and the public sector,” Vodafone Group CEO Vittorio Colao said in a statement. “The merged operation will be a stronger competitor in the Netherlands - one of our core European markets - and is a further example of Vodafone’s ability to create value for its customers and shareholders through an effective market-by-market convergence strategy.”