Light Reading
After months of due diligence, Vodafone offers more than £1B for enterprise services and international capacity player C&W Worldwide

Vodafone Offers £1B for C&W Worldwide

Ray Le Maistre
4/23/2012
50%
50%

More than two months after it first admitted its interest, Vodafone Group plc (NYSE: VOD) has made an official cash bid for enterprise services and international capacity operator Cable & Wireless Worldwide plc (London: CW) worth £1.044 billion (US$1.68 billion), an offer that has been accepted and recommended by the C&W Worldwide board.

Vodafone is offering 38 pence per C&W Worldwide share, a 92 percent premium over the price on 10 February, the last day before the global services giant announced it was considering a takeover bid. (See Euronews: Vodafone Eyes M&A Opportunity.)

Since then others have evaluated C&W Worldwide, but Vodafone is currently the only bidder. (See Euronews: Tata Considers C&WW Bid.)

The news sent C&W Worldwide's share price up by more than 16 percent to 37.25 pence in early Monday morning trading on the London Stock Exchange.

Vodafone believes C&W Worldwide's operations will help it strengthen its enterprise business in the U.K. and provide it with valuable network assets in the U.K. and internationally that will help reduce its reliance on others' infrastructure and thus help reduce its costs. C&W Worldwide has about 6,000 enterprise and carrier customers globally to which it provides a range of voice and data services, including IP, Ethernet and cloud services. (See C&W Worldwide Wins Cloud Services Deal , C&W Worldwide Bolsters Smart Grid Offer , C&W Worldwide Boasts IPv6 Heritage and C&W Worldwide Extends Videoconferencing.)

In its official bid note, Vodafone notes that C&W Worldwide's U.K. fiber network -- 20,500 kilometers in length and reaching more than 400 cities and towns -- "fits well with the location of Vodafone Group’s UK base stations. As the demand for mobile data continues to grow strongly, the CWW fibre network can provide fast backhaul of data traffic at considerably lower cost compared to prevailing market rates for leased capacity. Cost savings can also be achieved from combining UK procurement and rationalizing network, IT and administrative functions." About 75 percent of C&W Worldwide's revenues are generated in the U.K.

Outside the U.K., the combination of Vodafone Global Enterprise and C&W Worldwide's network -- 425,000 kilometers in length with 127 global points of presence in 35 countries -- would "increase the scope of services Vodafone Group can offer enterprise customers. CWW’s extensive international network and high traffic volumes give it a favourable peering status for IP transit with other operators. Exploiting CWW’s international network capacity in servicing Vodafone Group’s international IP traffic requirements will generate significant cost efficiencies. CWW will also be able to handle part of Vodafone Group’s international traffic that is currently carried by other operators."

C&W Worldwide generated revenues of £2.26 billion ($3.64 billion) and an operating profit of £153 million ($246 million) in the financial year to March 31 2011 but has since issued profit warnings, cut costs, changed its CEO twice and been focused on finding a buyer. (See C&WW Provides H1 Update, C&W Worldwide Names New CEO, Pluthero Back in C&W Hot Seat and Euronews: C&W Worldwide Mulls Asset Sale.)

In the six months to 30 September 2011, C&W Worldwide generated revenues of £1.07 billion ($1.72 billion), down 4.5 percent year-on-year, and reported an operating profit (before one-time costs) of £50 million ($80.4 million), down 35 percent from a year earlier.

Vodafone expects that, should the deal be completed, some of C&W Worldwide's 6,000 staff would be made redundant but said that the number of staff and locations affected have not yet been identified.

— Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Michelle Donegan
50%
50%
Michelle Donegan,
User Rank: Light Beer
12/5/2012 | 5:35:32 PM
re: Vodafone Offers £1B for C&W Worldwide


Vodafone says with acquisition of CW&W, it  will be the second largest service provider in the UK, after BT, by revenue. It's now fourth largest.


As for Vodafone's partnership with BT, CEO Vittorio Colao said on the analyst call this morning that he didn't see any reason why that partnership should not continue.

Flash Poll
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
LRTV Custom TV
Redknee Supports BH Telecom With Redknee Unified

7|2|14   |   6.14   |   (0) comments


Lucas Skoczkowski, CEO of Redknee, and Amir Orucevic, Director BH Mobile, discuss how the benefits of the Redknee Unified suite of products provide BH Telecom with innovation and leadership in the market, with the flexibility to launch services faster to the market, provide new and compelling promotions and pricing models, and combine services in order to drive ...
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Have IBM & Apple Partnered Their Way to Cloud Leadership?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/18/2014
Will Telecom's 'Open' Be Natural or Organic?
Carol Wilson, Editor-at-large, 7/15/2014
Analytics, Security Key to Apple, IBM Tie-Up
Ray Le Maistre, Editor-in-chief, 7/16/2014
Like Us on Facebook
Twitter Feed