Liberty Global is set to acquire Swiss mobile network operator Sunrise, in a deal that values the company at $7.4 billion (6.8 billion Swiss francs).
Sunrise’s board of directors has recommended that its shareholders accept the all-cash offer from Liberty Global, which would pay $119.65 (110 Swiss francs) per share.
In its recommendation note to its shareholders, the Sunrise board of directors said that the acquisition would allow the Swiss operator to significantly strengthen its quad play service provision across the country.
“The combination will create a stronger, fully converged nationwide challenger across all elements of the 4 play bundled product, including fibre, cable, TV and mobile. The combined company will have the scale to drive innovation, invest in new services and pursue growth by providing innovative and competitively priced offers. The enlarged new company will also be better positioned to drive competition with direct benefits for the Swiss economy and consumers,” a spokesman for the Sunrise board of directors said.
Sunrise was one of the first operators in Europe to launch 5G services and the acquisition by Liberty Global will help the company to continue its next generation network roll-outs, including 5G and future technologies, offering up to 1Gbps speeds to 90 per cent of Swiss households by 2021. UPC Switzerland’s next generation fixed network with its extensive fibre backbone will further strengthen Sunrise's leadership position in 4G and 5G, the company claimed.
“Sunrise has delivered on its quality- focussed strategy and built one of the best mobile networks worldwide. We have successfully gained market share in all our businesses, underpinned by our strong focus on customer centricity, service excellence, innovation and quality offering. We are very proud of what our employees have achieved and believe that the combination with UPC Switzerland will enable the combined company to become the leading fully converged challenger in the market,” said Andre Krause, CEO of Sunrise.