Cable & Wireless Worldwide (CWW) has been bought by Vodafone in a deal worth €1.3 billion – ending weeks of speculation about its future.
The deal is good news for the struggling telecoms group, after Indian company Tata Communications decided not to pursue a takeover bid last week.
CWW shareholders will pocket the equivalent of 46 cents per share.
With the police and Tesco among the organisations using CWW's high-speed telecoms services, the deal will boost Vodafone's enterprise division.
The mobile phone operator will also gain CWW's huge fibre network and make what it termed "valuable cost savings" in backhaul, procurement and back office.
Vittorio Colao, Vodafone Group chief executive, said: "The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."
Vodafone revealed that a reduction in headcount and office locations in places where the two firms overlap is likely, but specific numbers are yet to be determined.
There is also no mention of whether the CWW brand will be kept.
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