DNA PLC STOCK EXCHANGE RELEASE 31 MAY 2019, 11.00 AM
DNA has agreed to purchase an extensive fibre-optic network infrastructure used by ICT Elmo Oy (formerly Tampereen Puhelin) as well as its consumer and housing company business. The sellers are ICT Elmo Oy as well as Pohjois-Hämeen Puhelin Oy and Ikaalisten-Parkanon Puhelin Oy.
The acquisition will strengthen DNA’s market position in the Tampere region and give DNA its own extensive fibre-optic network infrastructure in Finland’s second largest economic area. Through the acquisition, DNA will gain more than 30,000 new fixed-line broadband customers and almost 25,000 new cable TV customers.
In addition to ICT Elmo’s consumer and housing company business, DNA is taking over ICT Elmo’s extensive fibre-optic network infrastructure, which consists of around 1,700 km of fibre-optic cable and which will facilitate the introduction of 5G in the Tampere region and enable the provision of increasingly fast fixed-line and mobile internet access to the area’s almost 200,000 households and more than 25,000 businesses.
“ICT Elmo and its owners have been investing in the fibre-optic network since their beginnings. This transaction gives us an extensive state-of-the-art network of our own in the Tampere region and the ability to begin providing services on a large scale straight away. Supplemented with the latest technology, the network will enable us to offer, for example, gigabit-speed broadband services, 5G services and faster services for our corporate clients”, explains Mikko Kannisto, DNA’s Director, Transmission Networks.
The net sales of the acquired business in 2018 was around EUR 8 million. DNA has been a major customer of ICT Elmo’s operator business. The total acquisition price is EUR 27.4 million, which equates to an EV/EBITDA of approximately 6.1x with cost synergies considered. The full extent of the cost synergies will be realised from 2020 onwards, consisting mainly of lower network leasing, operating and building costs. The acquisition also promises significant new sales potential. DNA will be taking over fewer than 20 members of ICT Elmo’s staff. The acquired business will not have a significant impact on DNA’s net sales or EBITDA in 2019.
Measured by the number of subscriptions, DNA is Finland’s second largest fixed broadband operator. After the acquisition, DNA will have its own fibre-optic network infrastructure in all of Finland’s largest growth areas, and it will be able to offer its gigabit-speed broadband services to more than one million households.
The transaction will be effective immediately, and the acquired business operations will be consolidated into DNA’s figures as of the beginning of June.
More information for investors/analysts:
Timo Karppinen, CFO, DNA Plc, tel. +358 (0)44 044 5007, timo.karppinen@dna.fi
Marja Mäkinen, Head of IR, DNA Plc, tel. +358 (0)44 044 1262, marja.makinen@dna.fi
Further information for the media:
Jarno Haikonen, Vice President, Broadband and TV Business, DNA Plc, tel. +358 (0)44 044 2058, jarno.haikonen@dna.fi
Mikko Kannisto, Director, Transmission Networks, DNA Plc, tel. +358 (0)44 590 2527, mikko.kannisto@dna.fi
DNA Corporate Communications, +358 44 044 8000, viestinta@dna.fi
DNA is a Finnish telecommunications group providing high-quality voice, data and TV services for communication, entertainment and working. DNA is Finland's largest cable operator and the leading pay TV provider in both cable and terrestrial networks. Our mission is to provide products and services that make our private and corporate customers' lives simple. As a telecommunications operator, DNA plays an important role in society by providing important communication connections and by enabling digital development. DNA was ranked as Finland's best place to work in 2019 in the Great Place to Work survey’s large companies category. In 2018, our net sales were EUR 912 million and our operating profit EUR 139 million. DNA has more than 4 million subscriptions in its fixed and mobile communications networks. The Group also includes DNA Store, Finland's largest retail chain selling mobile phones. DNA shares are listed on Nasdaq Helsinki Ltd. For further information, visit www.dna.fi or follow us on Twitter @DNA_fi and Facebook.