Telia Company has completed the acquisition of Bonnier Broadcasting from Bonnier AB. The combination of the best networks and content in the Nordics enables new customer offerings and business opportunities.
“It’s a great feeling to close this transaction and finally be able to start working together with our new colleagues at TV4, C More and MTV. By combining top quality news, entertainment, drama and sport with Telia Company’s core operations, we will be able to serve customers and viewers in new ways and at the same time create value for our shareholders” says Christian Luiga, acting President and CEO of Telia Company.
On July 20, 2018, Telia Company announced the acquisition of Bonnier Broadcasting, including brands TV4 in Sweden, MTV in Finland and C More which is present in both markets, from Bonnier AB for SEK 9.2 billion on a cash and debt free basis which was equivalent to an EV/EBIT multiple of 15.3x excluding synergies. Based on rolling twelve months as per August 31, 2019, the EV/EBITA multiple was 8.4x. The acquisition is expected to generate EBITDA synergies as per 2020 with a full run-rate of SEK 600 million in 2022.
The transaction also includes an earn-out based on certain financial and operational metrics. The size of the earn-out of a maximum of SEK 1 billion is yet to be determined according to agreed procedures.
The European Commission approved the acquisition on November 12, 2019, and the transaction was closed today. Bonnier Broadcasting will be consolidated into Telia Company’s reporting as of today.
Casten Almqvist becomes a member of Telia Company’s Group Executive Management as Head of the new business area TV/Media.