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.

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed