French operator Bouygues Telecom penned an agreement to acquire MVNO Euro-Information Telecom from banking group Credit Mutuel for at least €530 million, as part of a broader deal to boost subscriber numbers and its distribution strategy.
The company explained the basic acquisition fee would be paid once the deal closes, which it expects to happen this year subject to French Competition Authority approval. It also agreed to pay an additional €140 million to €325 million over a number of years, subject to achieving “certain business performance criteria”.
Euro-Information Telecom currently serves 2 million subscribers. In addition to bringing those to the Bouygues Telecom stable, CEO Richard Viel said a related distribution agreement with Credit Mutuel would strengthen the operator’s “commercial footprint” by enabling it to sell “through the local bank branches” of the company across France.
All-told, the deal opens the door to around 4,200 banks.
Bouygues Telecoms was the fourth-largest operator by connections in Q1 with more than 12 million, GSMA Intelligence data showed.
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