T-Mobile Austria Buys Liberty Global's Austrian Unit for EUR1.9 Billion

By Alberto Delclaux

Deutsche Telekom AG (DTE.XE) said Friday that its subsidiary T-Mobile Austria acquired cable operator UPC Austria, a unit of Liberty Global PLC (LBTYA), in a deal valued at 1.9 billion euros ($2.3 billion).

Synergies after integration costs should be around 800 million euros, Deutsche Telekom said. Savings in operating costs and increased efficiency in investments will account for 80% of the synergies, especially in IT and network operations.

Deutsche Telekom expects the deal will have a positive impact on free cash flow and earnings per share from the first year of implementation.

The combined revenue of the T-Mobile Austria and UPC Austria is forecast at around EUR1.2 billion in 2017.

The deal is expected to close in the second half of 2018.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

December 22, 2017 02:54 ET (07:54 GMT)

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